US sanctions companies helping Iranian petrochemical firms evade sanctions News
Skitterphoto / Pixabay
US sanctions companies helping Iranian petrochemical firms evade sanctions

The US Department of the Treasury Thursday sanctioned 39 entities connected with providing financial services to sanctioned Iranian firms, such as Persian Gulf Petrochemical Industry Commercial Co. (PGPICC) and Triliance Petrochemical Co. Ltd. (Triliance). US officials alleged the sanctioned entities provided the Iranian firms with access to the international financial system and obfuscated their trade with foreign customers.

A majority of the sanctioned entities were based in Hong Kong and the United Arab Emirates. Reportedly, the companies worked as intermediaries for PGPICC and Triliance. This helped the Iran-based firms evade sanctions and earn billions of dollars through third-party petrochemical sales.

Deputy Secretary of the Treasury Wally Adeyemo hailed the order, stating:

Iran cultivates complex sanctions evasion networks where foreign buyers, exchange houses, and dozens of front companies cooperatively help sanctioned Iranian companies to continue to trade. Today’s action demonstrates the United States’ commitment to enforcing our sanctions and our ability to disrupt Iran’s foreign financial networks, which it uses to launder funds.

The Department of Treasury issued the sanctions in accordance with Executive Order No.13846 and 13382, imposed during Trump administration. Pursuant to the sanctions, the properties connected to these entities will have to be reported to the Office of Foreign Assets Control (OFAC). Furthermore, US citizens are prohibited from engaging in financial and property-related transactions with the sanctioned firms.