The United States Department of the Treasury has added the Chinese oil refinery Hengli Petrochemical, located in Dalian, to its sanctions list for its involvement in processing Iranian oil. In addition, sanctions have been imposed on approximately 40 shipping companies and vessels connected to Iran’s shadow fleet.
On April 24, the Office of Foreign Assets Control (OFAC) announced these measures, highlighting the significant role that Chinese refineries play in supporting Iran’s oil economy. Hengli Petrochemical has emerged as one of Iran’s largest customers, reportedly purchasing billions of dollars worth of Iranian crude.
According to OFAC, independent Chinese refineries are major purchasers of Iranian crude oil, providing a crucial source of revenue for Tehran. Since at least 2023, Hengli Petrochemical has been receiving shipments of Iranian oil from several sanctioned vessels associated with Iran’s shadow fleet. The U.S. Treasury noted that at least three of these vessels—BIG MAG, GALE, and ARES—have transported over five million barrels of Iranian crude oil.
Furthermore, OFAC’s sanctions extend to around 40 maritime companies and ships linked to this shadow fleet. The U.S. has previously targeted networks supplying components for the production of Shahed drones and missiles in Iran, affecting both individuals and entities across multiple countries.
The U.S. has sanctioned Hengli Petrochemical for processing Iranian oil and targeted shipping companies linked to Iran's maritime operations. These actions reflect ongoing efforts to curb Iran's oil revenue and military capabilities.