US Sanctions Hengli Petrochemical's Dalian Refining and Chemical Plant, Accusing It of Involvement in Iran Oil Trade

On April 24, 2026, local time, the U.S. Department of the Treasury's Office of Foreign Assets Control (OFAC) announced sanctions against Hengli Petrochemical (Dalian) Refining Co., Ltd., a core wholly-owned subsidiary of the Chinese listed company Hengli Petrochemical (600346.SH). The company was added to the "Specially Designated Nationals List" (SDN List). Simultaneously, 19 shipping companies and 19 shadow fleet vessels were sanctioned, with allegations that these entities engaged in the transportation trade of Iranian oil and petrochemical products.

The U.S. initiated these sanctions under Executive Order 13902. This `order` targets operational entities related to the Iranian oil and petrochemical sectors, aiming to advance the U.S. campaign of financial pressure against Iran. This sanction marks a significant escalation in the U.S. "maximum pressure" campaign against Iran and represents the first time the U.S. has directly sanctioned a large private Chinese refining end-user.

On the evening of April 26, Hengli Petrochemical issued a statement in response, stating that the U.S. Treasury's sanctions lack factual and legal basis and constitute unilateral sanctions. The company clarified that since its inception, it has always operated legally and compliantly, has never had any trade dealings with Iran, and that crude oil suppliers have committed that the origin of the supplied crude oil is not within the scope of U.S. sanctions. Currently, the company's production and operations are entirely normal, and crude oil reserves are sufficient to meet processing needs for more than the next three months. A special compliance response mechanism has been initiated, and necessary measures will be taken in accordance with the law to safeguard the company's rights and interests.

Among the sanctioned entities are 1 refining company, 19 shipping companies, and 19 associated vessels, involving Mainland China, Hong Kong, China, and multiple overseas regions. The complete list of sanctioned entities is as follows:

List of Sanctioned Entities