Page 14 - DMEA Week 50 2020

DMEA PETROCHEMICALS DMEA

US slaps sanctions on Chinese, UAE firms

over Iranian petchem sales

IRAN THE US has blacklisted companies based in movement of Iranian petroleum and petro-
China and the UAE for supporting the sale of chemical sales.
US President-elect Joe Iranian petrochemicals, as Washington looks The sanctions freeze any US assets of the
Biden is due to take to ratchet up pressure on Tehran in the closing companies and prevent US citizens from deal-
office on January 20 weeks of President Donald Trump’s term. ing with them. Foreign financial institutions that
and has vowed to bring In a statement on December 16, the US Treas- knowingly facilitate deals with blacklisted enti-
the US back into the ury Department said it had placed sanctions on ties are also at risk of sanctions, the Treasury said.
2015 Iran nuclear deal. four entities for facilitating the export of petro- The US has also designated both the Iranian
chemicals by Hong Kong-based Triliance Petro- Petroleum Ministry and its national oil com-
chemical Co. Triliance itself was targeted with pany NIOC as supporters of terrorism, because
sanctions by Washington along with three other of their financial backing of Iran’s Islamic Revo-
petrochemicals firms in January. lutionary Guard.
The companies blacklisted this week were Washington began re-imposing sanctions on
China-based Donghai International Ship Man- Iran in 2018, after Trump pulled the US out of
agement and Petrochem South East, and the the 2015 Iran nuclear deal. Iran has responded
UAE’s Alpha Tech Trading. Donghai operated a by ramping up its petrochemicals capacity to add
vessel that freighted tens of thousands of tonnes value to its oil and bolster its revenues.
of petrochemicals worth millions of dollars from Petrochemicals became its biggest driver of
Iran to China, for a deal brokered by Triliance, foreign currency income last year owing to a
the Treasury alleged. Meanwhile, Petrochem slump in oil shipments caused by US sanctions.
was used to channel payments to companies Tehran previously found it easier to export
involved with transactions with Triliance. Alpha petrochemicals as US attention was largely on
served as a front company by Triliance and Trio preventing oil from leaving the country, but
Energy DMCC for brokering thousands of Washington’s focus has shifted.
tonnes of petrochemicals sales. US President-elect Joe Biden is due to take
Also placed under sanctions this week was office on January 20 and has vowed to bring the
Vietnam Gas and Chemicals Transportation US back into the 2015 Iran nuclear deal. Iran’s
Group, over its links with significant deals for Supreme Leader Ali Khamenei has said he will
the transport of petroleum products from Iran, engage with the incoming US president.
the Treasury said. “Of course, we are not saying that we should
“Iran’s petrochemicals and petroleum sec- not seek to lift the sanctions – if the sanctions can
tors are primary sources of funding for the Ira- be lifted, we should not delay, even for an hour,”
nian regime, which it uses to support its malign Khamenei said. But he cautioned that this should
domestic and foreign agenda,” Secretary Ste- be done “in the right, wise ... and dignified way.”
ven Mnuchin said. “The United States will act He will “support the country’s officials, as long as
against persons who support elicit actors in the they adhere to the nation’s goals.” ™

P14 www. NEWSBASE .com Week 50 17•December•2020