US Sanctions Chinese Oil Refinery & Ships Facilitating Iranian Oil Trade

Oil Tankers — Image for representation purposes only

The United States has imposed fresh sanctions on a Chinese oil refinery and a network of global shipping firms involved in purchasing and transporting Iranian crude oil.

The US Treasury Department’s Office of Foreign Assets Control (OFAC) announced the measures on March 20, 2025.

This is the fourth round of sanctions against Iran’s oil trade since the US launched a renewed “maximum pressure” campaign in February 2025. The campaign aims to cut off Iranian oil exports and block revenue sources supporting Tehran’s military activities.

One of the main targets of the latest sanctions is Shandong Shouguang Luqing Petrochemical Co. Ltd (Luqing Petrochemical), a privately owned “teapot” oil refinery located in Shandong Province, China.

According to the US, the refinery has purchased and processed millions of barrels of Iranian crude oil, valued at approximately $500 million.

The refinery received oil shipments from vessels linked to the Iranian Ministry of Defense and the Houthis, a group designated by the US as a Foreign Terrorist Organisation. Some shipments came from sanctioned vessels such as MEHLE (IMO: 9191711) and the KOHANA (IMO: 9254082).

The CEO of Luqing Petrochemical, Wang Xueqing, a Chinese national was also sanctioned for his role in facilitating these transactions.

The US claims that oil purchases by refineries like Luqing provide a financial lifeline for Iran’s government, helping it sustain military operations and support for armed groups.

The sanctions also target a network of 19 entities and vessels that facilitate the transportation of Iranian crude oil to teapot refineries like Luqing Petrochemical.

The US describes these tankers as part of Iran’s shadow fleet, a group of vessels that use deceptive shipping tactics like manipulating Automation Identification System (AIS) signals to avoid detection.

Among the vessels sanctioned are:

MEHLE (IMO: 9191711)- Allegedly linked to the Iranian Revolutionary Guard Corps-Qods Force (IRGC-QF) and the Houthis.

KOHANA (IMO: 9254082)- Transported over $100 million worth of Iranian crude oil on behalf of Iran’s Ministry of Defense and Armed Forces Logistics (MODAFL).

NATALINA 7 (IMO: 9310147), CATALINA 7 (IMO: 9310159), and MONTROSE (IMO: 9281695)- Operated by Hong Kong, Liberia, and Panama-based companies.

AURORA RILEY (IMO: 9181649), VIOLA (IMO: 9254915), and TITAN (IMO: 9293741)- Allegedly owned and operated by companies registered in the British Virgin Islands, Seychelles, and Panama.

The sanctions extend beyond the vessels to multiple companies across Hong Kong, Panama, Seychelles, and Liberia, which the US claims play a key role in Iran’s covert oil trade. These include:

Astrid Menks Limited (Hong Kong)- Alleged owner of the NATALINA 7.

Canes Venatici Limited (Hong Kong)- Alleged owner of the CATALINA 7.

Placencia Services Incorporation (Liberia)- Alleged owner of the MONTROSE.

Citywallship Management Co. Ltd (China)- Alleged ship manager and operator of the MONTROSE.

Jetee Co, Limited (Hong Kong)- Alleged operator of the VOLANS (IMO: 9422988).

Seapalm Shipping Limited (Seychelles)- Alleged owner and operator of the TITAN.

Britney Ryder Limited (Hong Kong)- Alleged owner of the VOLANS.

Sea Breeze Shipping Inc (Panama)- Alleged owner and operator of the VIOLA.

British Virgin Islands-based Lyrari Group Ltd owns the AURORA RILEY, managed by Hong Kong-based Setasean Ship Management Ltd, while Panama-based Zenith Bridge owns and operates the BRAVA LAKE (IMO: 9232876).

All these companies have been sanctioned under Executive Order (E.O) 13902, which targets Iran’s petroleum and petrochemical sectors.

The US Treasury Department states that any assets these entities hold in the US will be frozen, and American businesses and individuals will be prohibited from engaging with them.

Since February 2025, when the US launched the latest phase of its maximum pressure campaign, officials have repeatedly sanctioned entities involved in Iranian oil exports.

Iran, however, maintains that its nuclear program is for peaceful purposes. Western powers argue that Iran’s enrichment of uranium to near-weapons-grade levels has no civilian justification.

Despite sanctions, China remains Iran’s largest oil buyer, continuing imports through indirect channels.

Reference: US Treasury

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