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US sanctions oil tankers and China's 'teapot refinery' in relation to Iran

US sanctions oil tankers and China's 'teapot refinery' in relation to Iran

The U.S. issued new sanctions on Iran Thursday, including the first-ever "teapot" or independent refinery in China, as well as vessels that provided crude oil to these processing plants.

Washington imposed its fourth round of sanctions against Iran's oil exports since President Donald Trump announced in February that he would reimpose a "maximum-pressure" campaign, including efforts to reduce the country's output to zero. Trump wants to prevent Tehran from obtaining nuclear weapons and funding militant group.

Shandong Shouguang Luqing Petrochemical Co. Ltd. is a Chinese company that has been targeted by the Treasury for sanctions.

State Department spokesperson Tammy Bruce stated that the refinery purchased oil from vessels connected to Yemen's Iran aligned Houthi Movement, which the U.S. has designated as a Foreign Terrorist Organization this month, and the U.S. declared Iranian Ministry of Defense of Armed Forces Logistics.

China is the biggest importer of Iranian crude oil.

"Teapot"

Refiners are Chinese private refineries who are the main purchasers of Iranian crude oil.

Tehran claims its nuclear energy program has peaceful intentions, but Western powers claim that enriching uranium up to weapons-grade levels is not logically related to civilian purposes.

Treasury imposed sanctions against 12 entities and identified eight vessels that it claimed were responsible for the shipping of millions of barrels iranian oil to China. These vessels are part Iran's "shadow Fleet" of tankers which supply private refineries.

Wang Xueqing was also added to the list of specially designated nationals (SDN) because it was alleged that he had a connection with the refinery. Americans are forbidden from doing business with those on the list and their U.S. asset are blocked.

Treasury also blocked the Aurora Riley, the Catalina and Brava Lake, both flying the flag of Barbados.

State Department announced that it would impose sanctions on Huaying Huizhou Daya Bay Petroleum Terminal Storage in China for purchasing and storing Iranian crude from a vessel sanctioned. (Reporting and writing by Timothy Gardner and Ismail Shakil, editing by Mark Heinrich & David Gregorio).

(source: Reuters)