Hengli Group named main importer of sanctioned Iranian crude oil

The US Treasury’s Office of Foreign Assets Control designated Hengli Petrochemical (Dalian) Refinery Co., Ltd. on April 24, targeting what officials describe as one of the largest buyers of sanctioned Iranian crude oil. Hengli operates China’s second-largest “teapot” refinery, a term for the country’s independent, non-state-owned refineries. The facility in Dalian processes 400,000 barrels per day. Billions in alleged purchases, millions of barrels delivered According to the Treasury’s findings, Hengli has been purchasing billions of dollars’ worth of Iranian petroleum products since at least 2023. More than five million barrels were reportedly delivered to the company using sanctioned vessels, part of what’s commonly called the “shadow fleet.” The revenue generated from these sales allegedly flowed back to Iran’s Armed Forces General Staff through its sales agent, Sepehr Energy Jahan Nama Pars Company. The Treasury characterized those proceeds as amounting to hundreds of millions of dollars. The sanctions didn’t stop at Hengli alone. OFAC’s action extended to roughly 40 associated shipping entities and vessels. Hengli has pushed back firmly, calling the sanctions baseless and deny...