Third China-Based “Teapot” Refinery Designated for Violating Iran Sanctions

The United States is sanctioning China-based independent “teapot” refinery Hebei Xinhai Chemical Group Co., Ltd. and three oil terminal operators for their role in purchasing or facilitating the delivery of hundreds of millions of dollars’ worth of Iranian oil.

Additionally, the United States is designating numerous firms, vessels, and vessel captains involved in facilitating the transportation of Iranian oil to China as part of Iran’s “shadow fleet,” which funds Iran’s destabilizing behavior and support to terrorist proxies.

This is the United States’ third action against a China-based independent teapot refinery since President Trump issued National Security Presidential Memorandum 2 on February 4, 2025.

So long as Iran attempts to generate oil revenues to fund its destabilizing activities, the United States will hold both Iran and all its partners in sanctions evasion accountable. Today’s action is being taken pursuant to Executive Order (E.O.) 13902, which targets Iran’s petroleum and petrochemical sectors, and E.O. 13846, which targets Iranian petroleum exports. This action also marks the latest round of sanctions targeting Iranian oil sales since the President issued National Security Presidential Memorandum 2 (NSPM-2), instituting a campaign of maximum pressure on Iran. For more information on today’s action, please see the Department of the Treasury’s press release.