US imposes sanctions on China refinery and others for Iran oil purchases
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The US Treasury Department said it was the fourth round of sanctions in which the administration targeted China-based refineries that continue to purchase Iranian oil.
PHOTO: REUTERS
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WASHINGTON – The US imposed sanctions on about 100 individuals, entities and vessels, including a Chinese independent refinery and terminal that helped Iran’s oil and petrochemicals trade, the administration of US President Donald Trump said on Oct 9.
The Treasury Department sanctioned the Shandong Jincheng Petrochemical Group, which it said is an independent teapot refinery in Shandong province that has purchased millions of barrels of Iranian oil since 2023.
It also sanctioned China-based Rizhao Shihua Crude Oil Terminal, which operates a terminal at Lanshan Port. Treasury said it has accepted more than a dozen of Iran’s so-called shadow fleet vessels that evade the sanctions.
The tankers included Kongm, Big Mag and Voy. Treasury said the tankers transported several million barrels of Iranian oil to Rizhao.
The US believes Iran’s oil networks help Tehran fund its nuclear and missile programmes and support militant proxies throughout the Middle East.
Iran says its nuclear programme is for peaceful purposes.
The sanctions came even as Israel and Hamas signed a Gaza ceasefire and hostage deal,
Treasury said it was the fourth round of sanctions in which the administration targeted China-based refineries that continue to purchase Iranian oil.
“The Treasury Department is degrading Iran’s cash flow by dismantling key elements of Iran’s energy export machine,” Treasury Secretary Scott Bessent said.
Mr Trump, at a Cabinet meeting in the White House after the sanctions were released, said Iran told the administration that it was in favour of the Israel-Hamas ceasefire and hostage deal and that the US would work with Tehran.
“We’d like to see them be able to rebuild their country too, but they can’t have a nuclear weapon,” said the US leader, who added on Oct 9 that he will be leaving for the Middle East soon.
Despite waves of US sanctions, Iran continues to export large amounts of oil.
United Against a Nuclear Iran (Uani), which tracks the country’s petroleum shipments, said Iran’s oil exports in September set a new high for the year of about 63 million barrels, worth about US$4.26 billion (S$5.5 billion).
Uani said that September’s growth in sales was likely due to stockpiling ahead of the resumption of UN sanctions on Iran.
The State Department said the US also designated the first China-based terminal, Jiangyin Foreversun Chemical Logistics, for receiving Iranian-origin petrochemical products.
China has always firmly opposed the US’ abuse of illegal unilateral sanctions, Chinese embassy spokesman Liu Pengyu in Washington said.
“The United States should stop interfering with, and undermining, the normal economic and trade cooperation between China and Iran,” Mr Liu said in an e-mail response to Reuters.
“China will take all necessary measures to resolutely safeguard the legitimate rights and interests of Chinese companies.”
Iran’s mission to the United Nations in New York did not immediately respond to requests for comment. REUTERS
