OFAC Sanctions Another Chinese Oil Refinery, Updates Maritime Industry Guidance
The Office of Foreign Assets Control sanctioned Chinese oil refinery Shandong Shengxing Chemical Co. Ltd. on April 16 for buying more than $1 billion worth of Iranian crude oil from “shadow fleet” vessels.
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OFAC also sanctioned several vessels that are transporting Iranian oil shipments to China, including ships carrying the flags of Cameroon and Panama, as well as Malaysia-based Pro Mission SDN BHD, Marshall Islands-based Bestla Co., Ltd., Hong Kong-based Dexiang Shipping Co. Ltd., and Panama-based Oceanic Orbit Inc., Civic Capital Shipping Inc. and Starboard Shipping Inc. for owning or managing those vessels.
The Chinese refinery is the second OFAC has sanctioned in less than a month for buying Iranian crude oil (see 2503200014). The announcement also marks the sixth round of sanctions targeting Iranian oil sales since President Donald Trump signed a memorandum in February ordering U.S. agencies to pursue a "maximum pressure" campaign against Iran to stop the country from developing nuclear weapons and supporting terrorism (see 2502050020).
OFAC also issued an update to a 2019 advisory to help the global shipping and maritime industry guard against sanctions evasion practices involving Iranian oil. The amended guidance is part of Treasury's implementation of Trump's Iran memorandum.