U.S. targets Chinese, UAE firms in new Iran oil sanctions

The gas pump model is seen in front of the colors of the American and Iranian flags in this illustration taken March 25, 2022. REUTERS/Dado Ruvic/Illustration

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WASHINGTON, Aug 1 (Reuters) – The United States on Monday imposed sanctions on Chinese and other companies it says helped sell tens of millions of dollars worth of Iranian oil and petrochemicals to East Asia. That’s when they seek to pressure Tehran to curb its nuclear program.

The US Treasury and US State Departments imposed sanctions on a total of six companies, four based in Hong Kong, one in Singapore and one in the United Arab Emirates (UAE) in actions that were announced in separate statements. .

The Treasury has accused Persian Gulf Petrochemical Industry Commercial Co. (PGPICC), one of Iran’s largest petrochemical brokers, of using the companies to facilitate the sale of Iranian oil and petrochemicals in East Asia.

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Treasury has targeted UAE-based Blue Cactus Heavy Equipment and Machinery Spare Parts Trading LLC, which it says helped sell millions of dollars of Iranian-sourced petroleum products to Triliance Petrochemical Co. Ltd., based in Hong Kong, which has already been sanctioned by the United States.

It also targeted Hong Kong-based Farwell Canyon HK Limited and Shekufei International Trading Co., Limited to facilitate these sales with a view to shipping them to buyers in East Asia.

The Treasury accused PGPICC of using the companies’ bank accounts, as well as those of PZNFR Trading Limited, based in Hong Kong and Malaysia, to collect millions of dollars in revenue.

Separately, the State Department sanctioned Singapore-based Pioneer Ship Management PTE LTD for allegedly managing a vessel carrying Iranian petroleum products and Hong Kong-based Golden Warrior Shipping, Co. Ltd. for alleged transactions related to Iranian oil and petroleum products.

The actions freeze US-based assets and generally prevent Americans from doing business with them. Others who engage in certain transactions with the targeted companies also risk being sanctioned.

The moves represent the third round of Iran-related U.S. sanctions against Chinese companies in the past two months.

Since taking office in 2021, US President Joe Biden has balked at sanctioning Chinese entities engaged in oil trade with Iran in hopes of securing a deal to revive the 2015 Iran nuclear deal.

Efforts to resuscitate the deal – under which Iran had curbed its nuclear program in exchange for relief from US and other sanctions – have so far failed, leading Washington to look for other ways to increase the pressure on Tehran.

“The United States continues to follow the path of diplomacy to achieve a mutual return to full implementation of the Joint Comprehensive Plan of Action,” said the Treasury’s Under Secretary for Terrorism and Financial Intelligence, Brian Nelson, in the release, referring to the 2015 report. deal by his official name.

“Until Iran is ready to return to full implementation of its commitments, we will continue to apply sanctions against the illicit sale of Iranian oil and petrochemicals.”

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Reporting by Daphne Psaledakis, Arshad Mohammed and Kanishka Singh in Washington; Editing by Bernadette Baum and Andrea Ricci

Our standards: The Thomson Reuters Trust Principles.

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