US adds sanctions on Iran-linked energy, petchem firms

The US government has sanctioned another five companies it says are linked to petrochemical and oil purchases from Iran, taking to 12 the number of companies sanctioned in the last few days.

The US Treasury Department's sanctions enforcement arm, the Office of Foreign Assets Control (OFAC), yesterday took action against five UAE-based companies that it said collectively purchased significant volumes of oil products from Iran's state-owned oil company NIOC last year.

The companies are Petro Grand FZE, Alphabet International DMCC, Swissol Trade DMCC, Alam Althrwa General Trading and Alwaneo.

The latest sanctions are part of efforts by Washington to tighten its net around Iran's downstream sector. The sanctions may further curtail flows of petrochemicals from Iran to China, a top export destination.

The OFAC announcement came a day after the US State Department imposed sanctions on seven entities linked to Iran. The companies affected include South Africa's SPI International, which trades methanol and polymers.

The US government in January imposed sanctions on four other Iranian-linked petrochemical firms, including Hong Kong-based broker Triliance Petrochemical, a major exporter of methanol to China.

Iranian petrochemical producers are running out of options to export to their traditional markets because of sanctions, as well as border restrictions related to the coronavirus outbreak.

Turkey, another key destination for Iranian polymers, closed its borders with Iran in February in an attempt to stop the potential spread of the coronavirus.

source: Argus Media