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US broadens Iran targeting as it sanctions dozens of ‘ghost fleet’ tankers and companies

Ofac, State Department sanction 23 tankers and 16 entities in response to Iran’s missile attack on Israel

The US has announced its most aggressive round of Iran sanctions in years, targeting 39 tankers and companies in response to Iran’s missile barrage on Israel. The sanctions are expected to ‘delay deliveries and add tremendous costs to Iran’, according to US monitoring group United Against Nuclear Iran

WASHINGTON announced fresh sanctions on Friday targeting 16 companies and 23 tankers linked to Iranian oil trades, its most aggressive round of designations against Tehran’s petroleum sector in years.

The joint move from the US Office of Foreign Assets Control and the State Department brings the total of ships sanctioned for Iran links this year to 80 and comes in response to Iran’s missile attack on Israel on October 1 that saw the Islamic Republic lob nearly 200 missiles at its arch foe.

“Today’s sanctions target Iranian efforts to channel revenues from its energy industry to finance deadly and disruptive activity — including development of its nuclear programme, the proliferation of ballistic missiles and unmanned aerial vehicles, and support to regional terrorist proxies — with dangerous consequences for the region and the world,” said US treasury secretary Janet Yellen.

“We will not hesitate to take further action to hold Iran accountable.”

While sanctions have not stopped designated tankers from trading — nor Iran’s oil from flowing to its customers, particularly in China — they do raise hurdles and impose costs that ultimately reduce the revenue Tehran collects.

The 23 vessels sanctioned on Friday were “notorious offenders, transporting millions of barrels of oil for Iran”, said Claire Jungman, chief of staff at US monitoring group United Against Nuclear Iran.

“We expect these sanctions to delay deliveries and add tremendous costs to Iran.”

Ofac said Friday’s action was “in the spirit of the Stop Harboring Iranian Petroleum Act (SHIP Act)”, a law that was passed earlier this year to target participants in Iran’s oil trade. It was recently delegated by the White House to the Departments of Treasury and State.

In addition to the designations against “Iran’s ghost fleet”, Ofac published a determination that expanded its sanctioning authorities to include any person “determined to operate in the petroleum and petrochemical sectors” of Iran’s economy.

However, Iran’s oil sector is exhaustively sanctioned, and the US government already wields wide-ranging authorities to designate its participants, suggesting the move could be more about messaging.

“Iran sanctions authorities — including others targeting the Government of Iran, and the National Iranian Oil Company [NIOC] are some of the broadest authorities out there,” said Laura Deegan, counsel at Washington DC-based law firm Miller & Chevalier, and a former senior compliance officer at Ofac.

“Iran is also just comprehensively embargoed. It’s hard to see how this determination meaningfully expands existing Iran authorities when Ofac and the State Department have already been designating targets operating in the Iranian petroleum industry under other authorities,” she told Lloyd’s List.

“I see this more as a warning sign, perhaps meant for third-country actors transporting Iranian-origin product. It is messaging that likely complements all the enforcement actions and Department of Justice actions against those who help facilitate the movement of energy products from Iran.”

Ofac designations

Ofac sanctioned 10 companies in multiple jurisdictions for shipping Iranian oil and products and identified 16 vessels as blocked property of these companies.

Bendigo (IMO: 9289491), Carnatic (IMO: 9304655) and Salvia (IMO: 9297319) were identified as blocked property of United Arab Emirates-based Max Maritime Solutions FZE.

Luna Prime (IMO: 9174220), which Ofac said has “transported Iranian oil to multiple refineries in the PRC”, was identified as blocked property of Hong Kong-based Cathay Harvest Marine Ltd.

Elza (IMO: 9221671) was identified as blocked property of Liberia-based Elza Shipping, its registered owner. Elza Shipping was sanctioned for acting in support of the NIOC.

Goodwin (IMO: 9379703), Anhona (IMO: 9354521) and Wen Yao (IMO: 9288095) were identified as blocked property of UAE-based Harry Victor Ship Management and Operation LLC, which “managed a vessel that has transported multiple shipments of Iranian petrochemicals for Iran’s Triliance Petrochemical Co Limited [a US-sanctioned company]”.

Spirit Of Casper (IMO: 9224271) was said to have carried “multiple shipments of Iranian oil to refineries” in China. It was identified as blocked property of its registered owner, Marshall Islands-based Rita Shipping Inc.

Crystal Rose (IMO: 9292228) and Carina (IMO: 9240512) shipped Iranian oil to China. They were identified as blocked property of China-based Derecttor Company Limited.

Malaysia-based Delnaz Ship Management Sdn Bhd manages Dimitra II (IMO: 9208215), which shipped “millions of barrels” of Iranian oil to China. Dimitra II, Tyche I (IMO: 9247390), Satina (IMO: 9308778) and Cross Ocean (IMO: 9251810) were identified as blocked property of Delnaz.

Aventus I (IMO: 9280873), which Ofac said was “involved in the transfer of Iranian petroleum products”, was identified as blocked property of Panama-based Diamante Tankers Incorporated.

Davina (IMO: 9259367), which “has delivered Iranian oil” to China, was identified as blocked property of Marshall Islands-based Davina Shipping.

Ofac also sanctioned UAE-based Jazira Das International Oil Products Trading LLC for co-ordinating “shipping activities for multiple NIOC oil shipments with US-designated China Concord Petroleum Company, transporting millions of barrels of oil and obfuscating NIOC’s involvement in the shipments”.

The company was also the consignee on falsified cargo documents that masked “millions of barrels of NIOC Iranian crude as Emirati oil”, according to Ofac.

State Department designations

The State Department targeted six companies — Suriname-based Strong Roots Provider NV, Glazing Future Management NV and Engen Management NV; India-based Gabbaro Ship Services Pvt Ltd; Malaysia-based Alya Marine Sendirian Berhad; and Hong Kong-based Celia Armas Ltd — for “knowingly engaging in a significant transaction for the purchase, acquisition, sale, transport or marketing of petroleum or petroleum products from Iran”.

Berg 1 (IMO: 9262168), Voras (IMO: 9203265) and Hornet (IMO: 9197844) were identified as blocked property in which Strong Roots Provider, Glazing Future Management and Gabbaro Ship Services, respectively, have an interest.

Shanaye Queen (IMO: 9242118) and Carol (IMO: 9070072) were identified as blocked property of Alya Marine, and Octans (IMO: 9224295) was identified as blocked property of Celia Armas.

 
 

 

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