US Sanctions Impact Chinese Oil Giant Hengli Group
The United States has sanctioned Hengli Petrochemical for allegedly purchasing Iranian oil, leading to the closure of its Singapore trading arm and the suspension of supply deals. Beijing has responded by invoking its anti-sanctions law for the first time to support the private refining giant.
HENGLI PETROCHEMICAL CO L-A was sanctioned by the United States for purchasing oil from Iran. It is the largest refiner in China to face such measures, marking a shift from previous U.S. targets. The blacklisting threatens a preliminary deal with SAUDI ARABIAN OIL CO.
Last month, the sanctions on Hengli Petrochemical and about 40 shipping firms and vessels came as Washington looked to Beijing to pressure Tehran to accept a deal to end conflict in the region. Beijing invoked a 2021 law for the first time to block domestic companies from complying with foreign sanctions, a rare step underscoring the refiner's strategic importance.
