US added China’s Shandong Jincheng Petrochemical to sanctions list

The US Department of the Treasury has placed Shandong Jincheng Petrochemical Group Co., Ltd. on its Specially Designated Nationals and Blocked Persons (SDN) List, alleging that the Chinese refiner purchased Iranian crude oil in violation of longstanding US sanctions.

According to the Treasury, Shandong Jincheng—an independent “teapot” refinery located in China’s Shandong Province—has imported millions of barrels of Iranian oil since 2023, defying international restrictions on Iran’s energy exports.

The designation freezes all property and interests in property of Shandong Jincheng that fall under US jurisdiction and bars American individuals and entities from conducting business with the company. The move effectively severs the refiner’s access to much of the global financial system, as international banks and trading platforms commonly screen against entities listed by the Treasury’s Office of Foreign Assets Control (OFAC).

In addition to its refining operations, Shandong Jincheng recently brought several new polyolefin units online at its production complex. These include a 300,000 tons/year PP plant, a 450,000 tons/year HDPE line, and a 250,000 tons/year LLDPE unit.

Washington said the latest sanctions are part of a broader effort to disrupt Iran’s oil export network and cut off revenue streams that support Tehran’s nuclear program and regional proxy activities.

The SDN list, maintained by OFAC, identifies individuals and entities considered threats to US national security or foreign policy interests, including those involved in terrorism, sanctioned regimes, and transnational criminal organisations.

Written: Farid Muzaffar