China Blocks US Sanctions On Refiners
China’s Commerce Ministry has issued an injunction against US sanctions imposed on five Chinese refiners accused of purchasing Iranian oil, escalating the trade and energy dispute between Beijing and Washington.
China Blocks US Refinery Sanctions
Beijing said the American sanctions violated international law and basic norms of international relations. The Chinese ministry said its injunction was aimed at preventing the implementation or recognition of the US measures against the named companies.
The move comes amid continued US efforts to restrict Iran’s oil revenue through sanctions on companies allegedly involved in buying Iranian crude.
Five Chinese Refiners Named
The companies named include Hengli Petrochemical (Dalian) Refinery, Shandong Jincheng Petrochemical Group, Hebei Xinhai Chemical Group, Shouguang Luqing Petrochemical and Shandong Shengxing Chemical.
The US Treasury had sanctioned Hengli Petrochemical in April, accusing it of buying billions of dollars’ worth of Iranian oil. The other four refiners had been sanctioned earlier under Washington’s broader campaign against Iranian oil exports.
Iranian Oil And China Refineries
The sanctions have reportedly created difficulties for the refiners, including problems receiving crude and selling refined products under regular names.
China’s smaller independent refineries, often called teapot refineries, form a major part of the country’s refining sector. These companies have already been under pressure from weak domestic demand and narrow margins, making the sanctions dispute more significant for China’s oil market.
