US Treasury warns banks over Chinese teapot refiners buying Iranian oil

The US Treasury's Office of Foreign Assets Control issued an alert to US and foreign financial institutions on the sanctions risks of dealing with independent teapot refineries in China, mainly in Shandong province. OFAC said China buys about 90% of Iran's oil exports, most of it taken by these refiners, and named five it has designated, including Hengli Petrochemical (Dalian). The alert lists shadow fleet tactics such as ship-to-ship transfers, manipulated location data and so-called zombie vessels. It says forged papers often relabel Iranian crude, most commonly as "Malaysian blend", and flags front companies in Asia and the UAE.

This is a summary in our own words of the linked reporting. Allegations are those of the source. How we report.