The United States is imposing a leading Chinese oil importer on its sanctions blacklist for trading crude oil from Iran, the US Secretary of State Mike Pompeo announced on July 22.
Mr. Pompeo said in a speech that “as part of that maximum pressure campaign, I am announcing that the United States is imposing sanctions on the Chinese entity Zhuhai Zhenrong and its chief executive Youmin Li.”
He further said, “They violated US law by accepting crude oil.”
The announcement was the advanced step by Washington to release its economic pressure on Tehran over its reported military activities in the Middle East and its nuclear deal by taking object to business partners.
Mike Pompeo continued, “We’ve said all along that any sanction will indeed be enforced. We can’t tolerate more money going to ayatollahs, putting American soldiers, sailors, airmen, marines, putting their lives at risk. It’s too important.”
Zhuhai Zhenrong along with Chinese State Refiner Sinopec are responsible for around all the Iranian crude oil that were imported in China.
Sources reported that China has taken around 12 million tonnes of crude oil from Iran in the first half of this year.
It continued that some of that crude oil is being held in “bonded storage” and didn’t pass through Chinese customs duty, possibly to circumvent the application of the US sanctions.