China’s Commerce Ministry announced Saturday it has issued a counter-injunction to prevent enforcement of US sanctions targeting five Chinese oil refineries that allegedly purchased Iranian crude, according to state media reports from Xinhua.
The affected companies include Hengli Petrochemical (Dalian) Refinery and four smaller ‘teapot’ refineries: Shandong Jincheng Petrochemical Group, Hebei Xinhai Chemical Group, Shouguang Luqing Petrochemical, and Shandong Shengxing Chemical.
Last month, the US Treasury Department sanctioned Hengli Petrochemical for allegedly purchasing billions of dollars worth of Iranian oil, marking an intensification of Washington’s ongoing campaign to restrict Tehran’s petroleum revenues. The remaining four refineries faced similar penalties during the previous administration.
Beijing’s Commerce Ministry condemned the American sanctions as violations of “international law and the basic norms of international relations.”
“The injunction stipulates that the United States cannot recognize, implement, or comply with the sanctions imposed on the aforementioned five Chinese companies,” the ministry declared.
The US penalties have created operational challenges for these refineries, including complications in securing crude oil supplies and forcing them to market their refined products under alternative brand names. These smaller ‘teapot’ refineries represent approximately 25% of China’s total refining capacity but operate on thin profit margins and face additional pressure from weak domestic fuel demand.
