The U.S. Treasury's OFAC announced on April 24, 2026, sanctions against Hengli Petrochemical (Dalian) Refining Co., Ltd., citing that the U.S. considers it one of the major customers of Iranian crude oil and petroleum products, having purchased billions of dollars worth of them. At the same time, OFAC also sanctioned about 40 shipping companies and vessels related to Iran's "shadow fleet."
The U.S. stated that Hengli has been receiving Iranian oil since at least 2023, including shipments transported by tankers from the already sanctioned shadow fleet. The U.S. also accused Hengli of receiving crude oil supervised by the oil sales entity under the Iranian Armed Forces General Staff, which provided hundreds of millions of dollars in revenue to the Iranian military.
With this sanction, Hengli Petrochemical is listed as an SDN, and assets within the U.S. or controlled by U.S. persons will be frozen, and U.S. persons are generally prohibited from engaging in transactions with it. If a company is directly or indirectly owned 50% or more by these sanctioned entities, it will also be considered subject to freezing. Non-U.S. entities that continue to assist it in evading sanctions may face secondary sanction risks.
OFAC also issued a General License V, allowing necessary "wind-down transactions" involving Hengli Petrochemical (Dalian) Refining Co., Ltd. to continue until May 24, 2026, at 00:01 Eastern Time, but payments to sanctioned entities must go into frozen interest-bearing accounts within the U.S.

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