Treasury Department Sanctions Chinese Refinery Accused of Buying More Than $1 Billion Worth of Iranian Oil

The move comes as the Trump administration continues its ‘campaign of maximum economic pressure’ on Tehran.

The Treasury Department building in Washington on March 13, 2025. Alex Brandon/AP Photo

The Treasury Department unveiled new sanctions on April 16 against a China-based refinery accused of purchasing more than $1 billion worth of Iranian oil—the latest move by the Trump administration as part of its “campaign of maximum economic pressure” on Tehran.

The department’s Office of Foreign Assets Control (OFAC) sanctioned independent “teapot” refinery Shandong Shengxing Chemical Co. Ltd., based in Shandong Province, China.

Officials said the company has received dozens of shipments of Iranian crude oil from “shadow fleet” vessels, some of which have been sanctioned for their role in transporting Iranian petroleum.

Some of the petroleum came from a front company for Iran’s Islamic Revolutionary Guard Corps-Qods Force (IRGC-QF), the department said.

“Any refinery, company, or broker that chooses to purchase Iranian oil or facilitate Iran’s oil trade places itself at serious risk,” Treasury Secretary Scott Bessent said in a statement. “The United States is committed to disrupting all actors providing support to Iran’s oil supply chain, which the regime uses to support its terrorist proxies and partners.”

According to the department, between March 2020 and January 2023, Shandong Shengxing sent more than $800 million in wire transfers to China Oil and Petroleum Company Ltd. (COPC).

COPC was an IRGC-QF front company that helped sell Iranian oil to China, the department said. COPC laundered billions through the U.S. financial system in support of Iran’s Islamic Revolutionary Guard, according to the department.

Approximately $108 million of the laundered money was seized by the Justice Department in February 2024.

The department also issued additional sanctions on several companies and vessels it said were responsible for helping transport Iranian oil shipments to China through its “shadow fleet.”

They included Panama-based Oceanic Orbit Inc. and Starboard Shipping Inc., Malaysia-based Pro Mission SDN BHD, Marshall Islands-based Bestla Co. Ltd., and Hong Kong-based Dexiang Shipping Co. Ltd.

As a result of the sanctions, any property and interests in property owned by the companies and vessels in the United States will be blocked and must be reported to the OFAC.

Additionally, any entities that are owned, either directly or indirectly, by the companies or vessels will also be blocked, and all transactions within the United States have been banned.

The Treasury said the latest announcement marks the sixth round of sanctions targeting Iranian oil sales since Trump signed a memorandum on Feb. 4 reinstating the “maximum pressure” campaign against Iran.

That memorandum states that Iran remains the “world’s leading state sponsor of terror,” with the country aiding terrorist organizations including Hezbollah, Hamas, the Houthis, the Taliban, al-Qaeda, and others.

Iran’s Islamic Revolutionary Guard Corps has been designated a foreign terrorist organization by the State Department, the memorandum notes.

The latest sanctions were announced on the same day that Iran confirmed that the next round of talks with the United States on Tehran’s nuclear program will be held in Rome.

The Epoch Times contacted a spokesperson for Iran’s United Nations mission and Starboard Shipping Inc. for comment but did not receive a response by publication time. The other companies could not be reached for comment.

The Associated Press contributed to this report.