US sanctions small Chinese refinery, Iranian shadow fleet

“The president is committed to driving Iran’s illicit oil exports, including to China, to zero,” the State Department stated.

By Mike Wagenheim, JNS

Ahead of a second round of nuclear pact talks with Iran, the Trump administration levied more sanctions on Iran’s oil network on Wednesday.

The US State and Treasury Departments announced the designation of a Chinese “teapot” refinery, which purchased more than $1 billion of Iranian crude oil, according to the State Department.

Shandong Shengxing Chemical Co. is a small, independent refinery known as a “teapot.”

Those refineries, which process crude oil, are known to play a significant role in circumventing sanctions, and US President Donald Trump took action against a different China-based teapot refinery in early February.

“The president is committed to driving Iran’s illicit oil exports, including to China, to zero,” the State Department stated.

“All sanctions will be fully enforced under the Trump administration’s maximum pressure campaign on Iran.”

Washington also sanctioned companies and vessels in Iran’s so-called “shadow” fleet, which facilitates Iranian oil shipments to China.

“As long as Iran attempts to generate oil revenues to fund its destabilizing activities, the United States will hold both Iran and all its partners in sanctions evasion accountable,” the State Department stated.

The Trump administration has regularly been announcing sanctions against Iran and its terror proxies, even as it attempts to negotiate with the Islamic Republic over a revived nuclear accord.

US and Iranian officials are expected to meet in Rome on Saturday, following an opening round of dialogue in Oman last weekend.