On 28 April, the US Treasury alerted financial institutions of the risk of secondary sanctions when dealing with Chinese independent refiners known as teapots that have been sanctioned for buying Iranian crude oil. The alert followed last week’s sanctioning of Hengli Petrochemicals, one of China’s largest independent refiners, as well as the designation of dozens of tankers, companies and individuals involved in the clandestine trade.
The Treasury warned US and foreign financial institutions that they “should carefully review any transactions involving China-based teapot refineries…given the heightened risk that transactions with these refineries could involve Iranian-origin oil.” It warned that IRGC-affiliated brokers typically use UAE and Hong Kong-based front companies to carry out the trades, and that the origin of volumes imported into China are often disguised through forged documents and STS transfers. (CONTINUED – 955 WORDS)
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