China Blocks U.S. Sanctions on Refiners
China's Commerce Ministry blocked U.S. sanctions on five Chinese refiners accused of buying Iranian oil, citing violations of international law.
Lauren Collins ·
China Blocks U.S. Sanctions on Refiners China's Ministry of Commerce announced Saturday, May 2, that it has issued an injunction to block U.S. sanctions targeting five Chinese refiners. These sanctions were imposed by the United States over accusations of purchasing Iranian oil, a move China's ministry stated violates international law.
The injunction specifically names Hengli Petrochemical (Dalian) Refinery, Shandong Jincheng Petrochemical Group, Hebei Xinhai Chemical Group, Shouguang Luqing Petrochemical, and Shandong Shengxing Chemical. The U.S. Treasury sanctioned Hengli Petrochemical in April for allegedly buying billions of dollars in Iranian oil, while the other four refineries faced sanctions from the Trump administration last year.
The Chinese ministry's injunction dictates that the United States cannot recognize, implement, or enforce the sanctions against these five companies. These U.S. sanctions had previously created operational challenges for the affected refiners, including difficulties in crude oil procurement and the necessity to market refined products under alternative names. These 'teapot' refineries collectively represent a quarter of China's refining capacity.