Sanctions

US sanctions China’s second-largest teapot refinery for purchasing Iranian oil

OFAC said Hengli Petrochemical (Dalian) Refinery, China’s second-largest teapot refinery, has emerged as one of Tehran’s most valued customers, purchasing billions of dollars’ worth of its oil products.

Published

3 months ago

April 27, 2026

Admin

The US Department of the Treasury’s Office of Foreign Assets Control (OFAC) on Friday (24 April) sanctioned China-based independent teapot refinery Hengli Petrochemical (Dalian) Refinery Co Ltd (Hengli).

OFAC said China-based independent teapot refineries continue to play a vital role in sustaining Iran’s oil economy, and Hengli is one of Iran’s largest customers for crude oil and other petroleum products, having purchased billions of dollars’ worth of Iranian petroleum.

“China’s independent oil refineries, colloquially known as ‘teapots’, purchase the majority of Iran’s crude oil, providing a vital source of revenue to the Iranian regime and its armed forces,” it said.

“Hengli Petrochemical (Dalian) Refinery Co Ltd, China’s second-largest teapot refinery, has emerged as one of Tehran’s most valued customers, purchasing billions of dollars’ worth of its oil products.”

“Since at least 2023, Hengli has received Iranian oil cargoes from a host of sanctioned shadow fleet vessels, including BIG MAG (IMO 9263215), GALE (IMO 9294240), and ARES (IMO 9174397), which alone have delivered over five million barrels of Iranian crude oil.”

OFAC alleged that Hengli has played an outsized role in purchasing crude oil from Iran’s armed forces.

“Since at least 2023, Hengli has received Iranian crude oil shipments overseen by the oil sales arm of Iran’s Armed Forces General Staff, Sepehr Energy Jahan Nama Pars Company, generating hundreds of millions of dollars in revenue for the Iranian military,” it said.

Additionally, OFAC is targeting approximately 40 shipping firms and vessels that operate as part of Iran’s shadow fleet, whose transportation of petroleum and petrochemicals provides a financial lifeline to Iran’s unstable regime.

Secretary of the Treasury Scott Bessent, said: “At President Trump’s direction, Treasury will continue to constrict the network of vessels, intermediaries, and buyers Iran relies on to move its oil to global markets. Any person or vessel facilitating these flows—through covert trade and finance—risks exposure to U.S. sanctions.”

The Treasury has previously targeted four teapot refineries as part of Trump’s maximum pressure campaign.

Photo credit: tommao wang on Unsplash
Published: 27 April, 2026

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Sanctions

EU sanctions target bunkering vessels supporting Russia’s shadow fleet

EU is extending scope of the existing rules also to cover vessels supporting the shadow fleet, by providing bunkering and other services, and listing 41 more vessels on top of the 632 already sanctioned.

Published

3 days ago

July 27, 2026

Admin

Editor’s note [28 July 2026]: Updated with names of bunkering vessels.

The European Union (EU) on Thursday (23 July) adopted the 21st package of restrictive measures against Russia, targeting bunkering vessels for the first time.

The EU is continuing to target the shadow fleet by extending the scope of the existing rules also to cover vessels supporting the shadow fleet, by providing bunkering and other services, and listing 41 more vessels on top of the 632 already sanctioned.

“The criteria for vessels listings are expanded to target for the first time ships that provide services to these vessels. Five bunkering vessels that have regularly refuelled already-designated tankers are also designated,” the EU said.

Bunkering vessels listed under the EU’s 21st Sanctions Package

Screenshot 2026 07 27 at 10.57.00 PM e1785203103327

The package also introduced a notification obligation for the sales of LNG tankers and a possibility to introduce new restrictions on the sale of LNG tankers to Russian citizens and companies and introduces other contractual obligations to mitigate the risk of reselling to Russia or for use in Russia.

The measures in the package focus on the sectors with the greatest impact: energy; financial services, including crypto; trade; and the Russian military-industrial complex.

Photo credit: Guillaume Périgois on Unsplash
Published: 27 July, 2026

Sanctions

US pushes Lukoil foreign assets sale talks deadline to 22 August

General licence allows companies to negotiate with Russian oil company Lukoil for the sale of Lukoil International GmbH or any of LIG’s majority-owned subsidiaries.

Published

3 days ago

July 27, 2026

Admin

The US Treasury Department’s Office of Foreign Assets Control (OFAC) on Friday (24 July) issued a general licence to extend the deadline for certain transactions involving Lukoil International until 12.01am on 22 August.

The general licence allows companies to negotiate with Russian oil company Lukoil for the sale of Lukoil International GmbH (LIG) or any of LIG’s majority-owned subsidiaries.

“For purposes of this general license, the term ‘contingent contracts’ includes executory contracts, executory pro forma invoices, agreements in principle, executory offers capable of acceptance such as bids or proposals in response to public tenders, binding memoranda of understanding, or any other similar agreement,” the licence noted.

On 27 October, the Russian company announced its intention to sell its international assets following new sanctions imposed by the US. OFAC has since extended the deadline multiple times.

According to its website, Lukoil also supplies marine fuels and lubricants to Russian sea and river ports, has a bunker fleet, and has a wide network of representative offices across the world.

Manifold Times previously reported Lukoil signing an agreement with US investment company Carlyle on sale of Lukoil International GmbH, a 100% subsidiary of Lukoil which owns international assets of Lukoil Group.

Photo credit: Artem Shuba on Unsplash
Published: 27 July, 2026

Sanctions

US reinstates Iran oil sanctions, orders wind-down by 17 July

US has revoked a licence permitting the purchase of Iranian crude oil, petrochemical products and petroleum products, with the restrictions taking effect immediately.

Published

3 weeks ago

July 8, 2026

Admin

The US Treasury’s Office of Foreign Assets Control (OFAC) on Tuesday (7 July) revoked a licence that had temporarily authorised transactions involving crude oil, petrochemical products and petroleum products of Iranian origin.

Under the new licence, the purchase of Iranian crude oil, petrochemical products and petroleum products is prohibited with immediate effect.

The latest licence replaces an authorisation issued on 22 June, which had been scheduled to remain in force until 21 August. The previous authorisation permitted the bunkering of vessels engaged in the approved transactions.

Parties that entered into contracts for Iranian oil during the period in which the authorisation was in effect have until 17 July to wind down Iran-related transactions.

Photo credit: Zbynek Burival on Unsplash
Published: 8 July, 2026