Hong Kong, Singapore, UAE Firms Hit With US Iran Oil Sanctions

The United States announced new sanctions on Monday imposed on companies in Hong Kong, Singapore and the United Arab Emirates (UAE) for selling Iranian oil and petrochemical products to East Asia.

The move by the US Treasury and State Department aims to raise pressure on Tehran to end its nuclear programme.

A total of six companies were targeted – four based in Hong Kong, one in Singapore, and one in the UAE – in actions that were announced in separate statements.

The Treasury accused Persian Gulf Petrochemical Industry Commercial Co (PGPICC), one of Iran’s largest petrochemical brokers, of using the firms to facilitate the sale of Iranian petroleum and petrochemical products to East Asia.

The Treasury targeted UAE-based Blue Cactus Heavy Equipment and Machinery Spare Parts Trading, which it said helped sell millions of dollars of Iranian-origin petroleum products to Hong Kong-based Triliance Petrochemical, which has previously been sanctioned by the United States.

It also targeted Hong Kong-based Farwell Canyon HK Ltd and Shekufei International Trading Co, Limited for facilitating such sales for onward shipment to buyers in East Asia.

The Treasury accused PGPICC of using the firms’ bank accounts, along with those of Hong Kong and Malaysia-based PZNFR Trading Ltd, to collect millions of dollars in proceeds.

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

The actions freeze US-based assets and generally bar Americans from dealing with them. Others that engage in certain transactions with the targeted firms also risk being sanctioned.

ALSO SEE: Asian Markets Fall as US-China Tensions Rise Over Pelosi Trip

Third Round of Iran Sanctions

The steps represent the third round of US Iran-related sanctions against Chinese firms in the last two months.

Since taking office in 2021, US President Joe Biden has been loath to sanction Chinese entities engaged in oil trade with Iran due to hopes of securing an agreement to revive the 2015 Iran nuclear deal.

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

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

“Until such time as Iran is ready to return to full implementation of its commitments, we will continue to enforce sanctions on the illicit sale of Iranian petroleum and petrochemicals.”

Reacting to the new sanctions, Iran’s Foreign Ministry spokesperson Nasser Kanaani said in a statement that Iran will respond “decisively and firmly” to the White House’s continuation of sanctions.