Treasury Targets Financial and Shipping Facilitators of Iranian Petrochemicals and Petroleum Sales

WASHINGTON — Today, the U.S. Office of the Treasury’s Office environment of Foreign Assets Manage (OFAC) sanctioned an worldwide community of businesses associated in the sale of hundreds of thousands and thousands of dollars’ worth of Iranian petrochemicals and petroleum solutions to finish people in South and East Asia. Today’s motion targets Iranian brokers and many front corporations in the UAE, Hong Kong, and India that have facilitated economic transfers and delivery of Iranian petroleum and petrochemical solutions. These entities have played a significant purpose in concealing the origin of the Iranian shipments and enabling two sanctioned Iranian brokers, Triliance Petrochemical Co. Ltd. (Triliance) and Persian Gulf Petrochemical Sector Industrial Co. (PGPICC), to transfer resources and ship Iranian petroleum and petrochemicals to buyers in Asia. In addition to OFAC’s designations, the Division of Point out is designating two entities centered in the People’s Republic of China (PRC), Zhonggu Storage and Transportation Co. Ltd. and WS Shipping and delivery Co. Ltd., for their involvement in Iran’s petrochemical trade.

“The United States is dedicated to severely limiting Iran’s illicit oil and petrochemical gross sales,” explained Underneath Secretary of the Treasury for Terrorism and Monetary Intelligence Brian E. Nelson “So extensive as Iran refuses a mutual return to entire implementation of the Joint Complete System of Action, the United States will keep on to implement its sanctions on the sale of Iranian petroleum and petrochemical merchandise.”

As Iran continues to speed up its nuclear method in violation of the JCPOA, we will carry on to speed up our enforcement of sanctions on Iran’s petroleum and petrochemical profits beneath authorities that would be eradicated beneath the JCPOA. These enforcement actions will carry on on a common foundation, with an intention to seriously limit Iran’s oil and petrochemical exports. Everyone associated in facilitating these illegal sales and transactions must cease and desist quickly if they desire to prevent U.S. sanctions.

These financial sanctions, which are reversible in the celebration of Iran’s return to JCPOA compliance, stick to the designations imposed final week towards the so-referred to as morality law enforcement and other law enforcement organizations and people liable for the dying in custody of Mahsa Amini and the violent repression of the protests that have followed. We continue to be concerned about a large range of Iranian policies, from their nuclear system, to abuses perpetrated towards their personal folks, to supporting Russia’s war of aggression towards Ukraine with drones and military services training, and destabilizing activities across the region, and we will carry on to reply to these risky policies with sanctions and other instruments.

Today’s action is staying taken pursuant to Executive Buy (E.O.) 13846 and follows OFAC’s August 1, 2022 designation of businesses supporting Iranian petrochemical conglomerate PGPICC the July 6, 2022 designation of a Persian Gulf-centered community facilitating Iranian petrochemical and petroleum gross sales and a June 16, 2022 action focusing on an global sanctions evasion community supporting Iranian petrochemical sales in East Asia.

Triliance Petrochemical Co. Ltd. Community

Triliance, a critical part of Iran’s petroleum and petrochemical sectors, which brokers the sale of Iranian products to international purchasers, has bought thousands and thousands of dollars’ worthy of of Iranian petrochemical and petroleum goods from Iran-based mostly petrochemical brokers Iran Chemical Industries Investment decision Company and Center East Kimiya Pars Co., which were being ultimately shipped to India. 

Triliance was beforehand selected pursuant to E.O 13846 in 2020 for, on or immediately after November 5, 2018, owning materially assisted, sponsored, or supplied monetary, content, or technological assist for, or goods or providers in help of, the National Iranian Oil Corporation (NIOC). NIOC itself is sanctioned pursuant to E.O. 13599, and also E.O. 13224, a counterterrorism sanctions authority.

India-based petrochemical corporation Tibalaji Petrochem Private Limited has acquired thousands and thousands of dollars’ worthy of of Triliance-brokered petrochemical merchandise, which includes methanol and base oil, for onward shipment to China. 

Triliance depends on middleman front firms to effectuate the sale of Iranian goods to purchasers in South and East Asia. Hong Kong-primarily based front business Sierra Vista Trading Limited was made use of to conceal petrochemical purchases truly worth hundreds of thousands of pounds from Iranian producers for onward cargo to China.  

Triliance also used front firms to pay out UAE-based Clara Transport LLC millions of pounds in freight rates for the cargo of Iranian petrochemical and petroleum items to  East Asia. UAE-primarily based Virgo Maritime has in the same way acquired the equivalent of tens of millions of pounds from Triliance considering that early 2022 to set up vessels for the storage and transportation of Iranian petrochemicals. Virgo Marine has operated the liquid petroleum gas tanker Fuel Attract, which transported tens of thousands of metric tons of Iranian petrochemicals brokered by Triliance.

Iran Chemical Industries Expense Firm, Center East Kimiya Pars Co., Tibalaji Petrochem Personal Restricted, Sierra Vista Trading Minimal, Clara Shipping LLC, and Virgo Maritime are all remaining selected pursuant to E.O. 13846 for, on or right after November 5, 2018, possessing materially assisted, sponsored, or furnished money, product, or technological help for, or merchandise or products and services in aid of, Triliance. The Fuel Allure is also currently being recognized as house in which Virgo Marine has an fascination pursuant to E.O. 13846. 

Persian Gulf Petrochemical Industries Business Company 

Hong Kong-primarily based Sophychem HK Constrained has purchased tens of millions of dollars’ truly worth of Iranian petrochemicals from PGPICC for onward cargo to China and Singapore. ML Keeping Group Minimal assisted aid tens of millions of dollars’ worthy of of identical Iranian petrochemical product sales to China for PGPICC. PGPICC is a subsidiary of Persian Gulf Petrochemical Business Organization (PGPIC), which is responsible for approximately half of Iran’s petrochemical exports. 

PGPICC was selected pursuant to E.O. 13382 on June 7, 2019, for being owned or managed by PGPIC, which was itself selected pursuant to E.O. 13382 that very same working day for offering financial guidance to Khatam al-Anbiya Building Headquarters, the engineering conglomerate of the Islamic Groundbreaking Guard Corps.  

Sophychem HK Limited and ML Holding Team Constrained are currently being selected pursuant to E.O. 13846 for, on or just after November 5, 2018, obtaining materially assisted, sponsored, or presented economical, substance, or technological support for, or merchandise or expert services in help of, PGPICC.   

Sanctions Implications 

As a result of today’s motion, all residence and interests in assets of these targets that are in the United States or in the possession or management of U.S. individuals must be blocked and claimed to OFAC. In addition, any entities that are owned, straight or indirectly, 50 % or additional by one or more blocked persons are also blocked. OFAC’s restrictions typically prohibit all dealings by U.S. individuals or within the United States (which includes transactions transiting the United States) that include any home or passions in residence of blocked or specified persons.

In addition, persons that interact in particular transactions with the persons and entities designated nowadays may possibly themselves be exposed to sanctions or matter to an enforcement motion. In addition, unless of course an exception applies, any overseas monetary institution that knowingly facilitates a considerable transaction or gives major monetary providers for any of the individuals or entities selected these days could be subject to U.S. sanctions.

The electricity and integrity of OFAC sanctions derive not only from OFAC’s ability to designate and add individuals to the Specially Specified Nationals and Blocked Persons Checklist (SDN Checklist), but also from its willingness to remove folks from the SDN Checklist consistent with the regulation. The supreme target of sanctions is not to punish, but to convey about a favourable improve in conduct. For info concerning the system for trying to find removal from an OFAC list, such as the SDN Checklist, remember to refer to OFAC’s Often Questioned Concern 897 listed here.  For in depth details on the system to submit a ask for for removing from an OFAC sanctions listing, make sure you take a look at right here.

Click on below for identifying information on the individuals and entities designated today.

Minnie Arwood

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