China Blocks U.S. Sanctions on Five Oil Refiners
SHANGHAI: China’s Ministry of Commerce announced on Saturday that it has taken steps to block U.S. sanctions targeting five Chinese oil refiners accused of purchasing Iranian oil. This information was reported by the state-run news agency Xinhua.
The five refiners include Hengli Petrochemical (Dalian) Refinery and several smaller “teapot” refineries: Shandong Jincheng Petrochemical Group, Hebei Xinhai Chemical Group, Shouguang Luqing Petrochemical, and Shandong Shengxing Chemical.
Earlier this year, the U.S. Treasury imposed sanctions on Hengli Petrochemical, claiming it had bought billions of dollars worth of oil from Iran. This action is part of the U.S. efforts to limit Iran’s oil profits.
The previous Trump administration also sanctioned the other four refiners listed by the Chinese ministry.
According to the ministry, these U.S. sanctions are against “international law and the fundamental principles of international relations.” In response, China has issued an injunction stating that the U.S. cannot enforce these sanctions on the five companies.
The sanctions have posed challenges for the refiners, making it harder for them to receive crude oil and requiring them to rebrand the refined products they sell. Notably, these smaller refineries, known for their limited profit margins, have been facing difficulties due to weaker domestic demand.
