Washington D.C. โ In a significant escalation of its “maximum pressure” campaign, the United States today announced a comprehensive set of sanctions targeting 20 entities and identifying 10 vessels involved in facilitating Iran’s illicit petroleum and petrochemical trade. The Department of State, acting under Executive Order (E.O.) 13846, stated that these actions aim to choke off revenue streams the Iranian regime uses to fund its destabilizing activities in the Middle East and oppress its own people.
The move comes as part of a broader, coordinated effort with the Department of the Treasury, which separately announced sanctions on over 115 Iran-linked individuals, entities, and vessels, marking the largest Iran-related sanctions action since 2018.
“The Iranian regime continues to fuel conflict in the Middle East to fund its destabilizing activities,” a Department of State spokesperson stated in a fact sheet released today. “Today, the United States is taking action to stem the flow of revenue that the regime uses to support terrorism abroad, as well as to oppress its own people.”
Continued Targeting of Iranโs Shadow Fleet
A key focus of today’s designations is Iran’s “shadow fleet,” a network of illicit shipping facilitators employing obfuscation and deceptive practices to transport Iranian oil and petrochemicals to buyers in third countries. Five vessel management companies and a petroleum wholesale company were singled out for their involvement in these activities.
Among the designated entities is ETIHAD ENGINEERING AND MARINE SERVICES FZC (ETIHAD), cited for its commercial management of vessels, including the SEATURBO, which loaded Iranian reformate in September 2022. ETIHAD is also linked to seven other tankers โ TRUGEN, SEABASS, SEAHAKER, ZEAL, MOLLY, SOFIA, and COURAGE 7 โ which have collectively transported Iranian petroleum products a dozen times since May 2023, often engaging in “dark activity” to conceal their movements. These eight vessels have been identified as blocked property.
Also sanctioned is FARADANESH TECHNICAL INSPECTION SERVICES COMPANY (FIS), an Iran-based cargo inspection firm that acted as a surveyor for Iranian petroleum product loadings. The United Arab Emirates-based company ARZO ALTEJARA FOR GOODS WHOLESALERS CO L.L.C (ARZO) was designated for purchasing fuel oil from the U.S.-designated NATIONAL IRANIAN OIL COMPANY in April-May 2024.
Other maritime-related entities hit with sanctions include ENSA SHIP MANAGEMENT PRIVATE LIMITED (ENSA), commercial manager of the vessel TIFANI, which conducted illicit ship-to-ship transfers of Iranian petroleum; PEACE WORTH SHIPPING CO., LIMITED (PEACE WORTH), a China-registered commercial manager whose vessel TONDA SOURCE repeatedly loaded Iranian-origin petrochemical products with dark activity; and AVANI LINES INC (AVANI), a registered owner and commercial manager linked to at least six voyages transporting Iranian crude oil to China via ship-to-ship transfers with sanctioned tankers.
Crackdown on Terminal Operators
The sanctions also extend to a critical element of Iran’s export infrastructure: a China-based crude oil and petroleum products terminal. ZHOUSHAN JINRUN PETROLEUM TRANSFER CO., LTD. (ZHOUSHAN JINRUN), an operator within the greater Zhoushan port area, was designated for facilitating the port calls and discharge of U.S.-designated tankers VIOLA and RANI, and for receiving at least six shipments of Iranian-origin crude oil.
Targeting Iranโs Petrochemical Trade
In a parallel effort, thirteen entities across multiple jurisdictions were designated for their involvement in the transshipment, sale, and purchase of Iranian-origin petrochemicals. This sector, while smaller than oil exports, generates billions in illicit funds for Iran’s destabilizing activities, often through intermediaries in third countries.
Notable among these are:
FIVA PLASTIK ANONIM SIRKETI (FIVA PLASTIK), a Tรผrkiye-based petrochemical trading company that imported over $6.8 million worth of Iranian petrochemicals.
TRIOLIN TRADE FZCO, a UAE-based company that sold Iranian petrochemicals to FIVA PLASTIK.
TANAIS WAY GENERAL TRADING L.L.C. (TANAIS TRADING), a UAE-based company exporting Iranian polyethylene, including to India-based KANCHAN POLYMERS, which was also sanctioned.
India-based petrochemical trading companies ALCHEMICAL SOLUTIONS PRIVATE LIMITED (ALCHEMICAL SOLUTIONS), RAMNIKLAL S GOSALIA AND COMPANY (RAMNIKLAL), JUPITER DYE CHEM PRIVATE LIMITED (JUPITER DYE CHEM), and GLOBAL INDUSTRIAL CHEMICALS LIMITED (GLOBAL INDUSTRIAL), all designated for significant imports of Iranian petrochemicals.
Tรผrkiye-based ELM KIMYA ITHALAT IHRACAT SANAYI VE TICARET ANONIM SIRKETI (ELM KIMYA) and LAVINYA PLAST KIMYEVI MADDELER VE PETROL URUNLERI NAKLIYE SANAYI IC VE DIS TICARET ANONIM SIRKETI (LAVINYA PLAST), also for importing Iranian petrochemicals.
Indonesia-based ORIENTAL COMMERCE GARDEN (PT. ORIENTAL) for exporting Iranian petrochemicals to LAVINYA PLAST.
India-based PERSISTENT PETROCHEM PRIVATE LIMITED and UAE-based BAB AL BARSHA TRADING L.L.C (BAB AL BARSHA) for their involvement in Iranian petrochemical shipments.
Sanctions Implications
As a result of these designations, all property and interests in property of the sanctioned entities that are in the United States or in the possession or control of U.S. persons are blocked and must be reported to the Department of Treasuryโs Office of Foreign Assets Control (OFAC). This also extends to any entities owned 50 percent or more, directly or indirectly, by one or more blocked persons. Transactions by U.S. persons involving these blocked entities are generally prohibited.
The U.S. government reiterated that the ultimate goal of sanctions is to bring about a positive change in behavior, and petitions for removal from the Specially Designated Nationals and Blocked Persons (SDN) List may be submitted to OFAC.
About the Author
