The U.S. Department of the Treasury’s Office of Foreign Assets Control sanctioned China-based Hengli Petrochemical (Dalian) Refinery Co., Ltd. and targeted approximately 40 shipping firms and vessels linked to Iran’s “shadow fleet” that move Iranian petroleum and petrochemicals. The action, taken under Executive Order 13902, includes adding 19 tankers to the Specially Designated Nationals and Blocked Persons List (SDN List) as blocked property of their designated owners or managers and designating 19 associated shipping companies for operating in Iran’s petroleum or petrochemical sectors. Hengli is described as China’s second-largest independent “teapot” refinery and one of Iran’s largest customers, having purchased billions of dollars’ worth of Iranian petroleum and received Iranian cargoes from sanctioned vessels since at least 2023, including deliveries of over five million barrels from BIG MAG, GALE, and ARES. OFAC also linked Hengli’s purchases to shipments overseen by Sepehr Energy Jahan Nama Pars Company, described as the oil sales arm of Iran’s Armed Forces General Staff. For the shadow fleet measures, OFAC cited examples including LISBOA’s transport of over 2.5 million barrels of Iranian naphtha to the United Arab Emirates between July 2025 and January 2026 and SEVAN’s transport of about 750,000 barrels of Iranian propane and butane to Bangladesh between August and November 2025. As a result of the designations, property and interests in property of blocked persons within U.S. jurisdiction must be blocked and reported to OFAC, entities owned 50 percent or more by blocked persons are also blocked, and U.S. persons are generally prohibited from dealings involving blocked property absent authorization or exemption.
U.S. Department of the Treasury 2026-04-24
U.S. Department of the Treasury sanctions Hengli Petrochemical teapot refinery and targets about 40 Iran shadow fleet firms and vessels
The U.S. Department of the Treasury’s Office of Foreign Assets Control designated China-based Hengli Petrochemical (Dalian) Refinery Co., Ltd. and about 40 shipping firms and vessels linked to Iran’s “shadow fleet” under Executive Order 13902 for operating in Iran’s petroleum and petrochemical sectors. Nineteen tankers and 19 associated shipping companies were added to the Specially Designated Nationals and Blocked Persons List. All property and interests in property of blocked persons within U.S. jurisdiction must be frozen, entities 50 percent or more owned by blocked persons are also blocked, and U.S. persons are generally prohibited from dealings involving such property.