US Sanctions Chinese Entities, Others Buying or Moving Iranian Oil
The U.S. this week sanctioned a Chinese refinery and three port terminal operators for their role in buying Iranian oil. It also sanctioned multiple companies, vessels and ship captains responsible for moving those oil shipments as part of Iran’s shadow fleet.
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The designations target Hebei Xinhai Chemical Group Co., Ltd., a “teapot” refinery, which are small, privately owned Chinese refineries that are reportedly used by China to evade sanctions. The Office of Foreign Assets Control said Hebei Xinhai, which is the sole shareholder of Singapore-based oil broker Xing AO Energy PTE. LTD, has received multiple shipments of Iranian crude oil worth hundreds of millions of dollars from shadow fleet vessels.
OFAC also sanctioned Baogang Logistics and Warehousing Co., Ltd.; Shandong Jingang Port Co., Ltd; and Shandong Baogang International Port Co., Ltd. for operating a port terminal at Dongying Port, which China has used to receive several shipments of Iranian oil from shadow fleet vessels since 2024. The agency also noted that the terminals have received oil carried by the vessels Corona Fun, Viola, Seasky and CH Billion. Each vessel was sanctioned by the agency earlier this year (see 2502060014 and 2503130021).
OFAC sanctioned several more vessels that it said are part of Iran’s shadow fleet and that have moved oil onto Chinese vessels through ship-to-ship transfers at sea. Those vessels are the Panama-flagged Star Twinkle, Lamd, Skadi and Big Mag; Sao Tome and Principe-flagged Impalas; and the San Marino-flagged Thane. Those ships are either owned by Hong Kong-based Star Twinkle Shipping Limited, Hong Kong Prime Trading Co., Ltd., Skadi Limited, U.K.-based Propitious Forever Trading Co Ltd, Hong Kong based-Embrace Que Limited or Marshall Islands-based Nissho Lines Incorporated.
The U.S. also sanctioned two vessel captains who have worked for several years on sanctioned shadow fleet ships by providing “key services to enable Iran’s oil exports.” The designations target Indian national Ketan Agarwal, who has served as the master of several vessels transporting Iranian oil since 2017, and Indian national Lincoln Francisco Viegas, who has served as the master of two vessels transporting Iranian oil since 2022.