Chinese companies have been added to a U.S. sanctions blacklist for helping Iran evade sanctions

The U.S. Treasury Department’s Office of Foreign Assets (OFAC) on Wednesday announced sanctions against four companies based in China and the United Arab Emirates for helping Triliance Petrochemical Co. Ltd, which had already been sanctioned, export Iranian Petrochemical products.

The Chinese companies on the sanctions list are Donghai International Ship Management Limited and Petrochem South East Limited, which is based in Hong Kong.

The other two UAE companies are Alpha Tech Trading FZE and Petroliance Trading FZE

The four companies provide critical shipping services or perform financial transactions on zhongxiang’s behalf, allowing Zhongxiang to continue to represent and transport Iran’s petrochemical exports, the U.S. Treasury Department said in a statement.

A cargo ship operated by Donghai International Shipping Management Co. shipped tens of thousands of tons of multimillion-dollar petrochemical products from Iran to China on behalf of Zhongxiang Petrochemical Co., while Southeast was used as a payment channel for the transaction, the statement said.

In January, the U.S. Treasury Department imposed sanctions on Hong Kong-based Zhongxiang Petrochemical Co. and three other petrochemical and oil companies that collectively transferred hundreds of millions of dollars worth of exports from the National Iranian Oil Company.

In September, the Treasury Department added six entities in Iran, the United Arab Emirates and China that support Zhongxiang Petrochemical Co. ‘s continued trading of Iranian petrochemical products to the sanctions list. In October, sanctions were also imposed on eight entities in Iran, Singapore and China that were involved in the trading of Iranian petrochemical products represented by Zhongxiang Petrochemical Co., or assisted Zhongxiang in the processing and transfer of funds generated from the sale of these products.

“Iran’s petrochemical and oil industries are a major source of revenue for the Iranian regime, which supports its nefarious agenda at home and abroad,” Treasury Secretary Steven Mnuchin said in a statement Wednesday. The U.S. government will crack down on those who help to illegally participate in the sale of Iranian oil and petrochemicals.”

In addition to the four newly sanctioned entities, The Vietnam Gas and Chemicals Transportation Corporation and its general manager were targeted Wednesday in connection with a deal to ship oil products out of Iran.

All assets in the United States of sanctioned entities and individuals will be frozen, and Americans will be barred from trading with them, the Treasury Department said. Foreign financial institutions that knowingly provide trading services to these entities and individuals are also at risk of being sanctioned.