China-based Hengli Group main importer of sanctioned Iranian crude oil, analysts say - report

Hengli Group, a major Chinese company with over 300,000 employees and annual revenues exceeding $100 billion, is reportedly a leading importer of Iranian crude oil. The Wall Street Journal published this finding on Saturday, citing industry analysts, shipping brokers, and the U.S. Treasury.

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Hengli is one of the largest companies in a network of "teapot" refineries in China that purchase sanctioned oil

Hengli is described as one of the largest entities within a network of Chinese "teapot" refineries that procure oil subject to international sanctions. Since 2023, U.S. authorities and shipping brokers claim Hengli has received at least five million barrels of Iranian oil. This oil was transported via multiple vessels that have been sanctioned by the United States.

In response to these activities, the U.S. Treasury sanctioned Hengli's refinery operations earlier this year. However, China's Commerce Ministry has directed domestic companies to disregard these sanctions. Furthermore, China's Foreign Ministry has characterized the U.S. sanctions as "illegal and unreasonable unilateral sanctions."

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Since 2023, Hengli has received at least five million barrels of Iranian oil from multiple ships sanctioned by the United States

Iran has been actively evading U.S. oil sanctions and blockades through a sophisticated system known as a 'shadow fleet.' This involves ship-to-ship transfers where sanctioned vessels laden with Iranian oil offload their cargo onto other ships at sea before proceeding to destinations like China. These receiving ships are often part of Iran's 'shadow fleet,' comprising older tankers that obscure their ownership, may change their flags to those of countries with lax shipping oversight, and often disable their tracking devices to conceal their identities.

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illegal and unreasonable unilateral sanctions