Department of State Targets Illicit Iranian Trade to Impose Maximum Pressure on Iran

The Iranian regime continues to fuel conflict and instability in the Middle East, disrupt trade flows, and fund terrorist and proxy groups. Today, the United States is taking action to stem the flow of revenue that the regime uses to support such destabilizing activity, as well as to oppress its own people.

The Department of State is designating several companies and shadow fleet vessels engaged in the sale and transport of Iranian petroleum, petroleum products, and petrochemical products. This action further implements National Security Presidential Memorandum-2, which directs the imposition of maximum economic pressure on the Iranian regime.

Entities Engaged in the Export of Iranian Petrochemical Products

The Department is designating the following entities pursuant to section 3(a)(iii) of E.O. 13846 for, on or after November 5, 2018, knowingly engaging in a significant transaction for the purchase, acquisition, sale, transport, or marketing of petrochemical products from Iran:

KAVEH METHANOL COMPANY (AKA KAVEH PETROCHEMICAL COMPANY) is the owner and operator of a methanol refinery and terminal in Iran. KAVEH PETROCHEMICAL COMPANY knowingly engaged in a significant transaction for the sale of petrochemical products from Iran in October 2022, when it loaded methanol onto a tanker. Since then, it has continued to sell and export Iranian methanol.

ARIA SINA CONTROL INTERNATIONAL TECHNICAL INSPECTION CO. (ASCO INTERNATIONAL) knowingly engaged in a significant transaction for the transportation of petrochemical products from Iran in October 2022, when it served as the surveyor for the loading of Iranian methanol onto a vessel in Iran. ASCO INTERNATIONAL is a cargo surveyor company that operates in all of Iran’s northern and southern ports, ensuring that Iran’s petroleum and petrochemical products are properly loaded onto tankers for export.

ASIAN SEA ANGEL SHIPPING CO knowingly engaged in a significant transaction for the transportation of petrochemical products from Iran in October 2022, when it functioned as the shipping agent facilitating the port call of a vessel that loaded methanol. It has facilitated the loading of Iranian petrochemical products on multiple occasions and has supported U.S.-designated TRILIANCE PETROCHEMICAL CO., LTD.

Targeting of Iran’s Shadow Fleet

The Department of State continues to designate vessel management companies and their tankers that knowingly engage in the transport of petroleum and petroleum products from Iran. These vessel management companies and their associated tankers have collectively transported millions of barrels of Iranian crude oil and petroleum products. Furthermore, these vessels have routinely engaged in “dark activity,” operating with their automatic identification system (AIS) location and identity beacon turned off. This behavior, which is designed to obscure the Iranian origin of the vessels’ cargoes, is a direct and unnecessary risk to other vessels as AIS is a key system used to avoid vessel collisions.

SAI SABURI CONSULTING SERVICES (SAI SABURI) is an India-based commercial manager of two LPG tankers, the BATELEUR (IMO: 9045807) and NEEL (IMO: 9157478). During SAI SABURI’s tenure as commercial manager, the BATELEUR engaged in a significant transaction for the transportation of petroleum products from Iran in September 2022, on behalf of the sanctioned company ALLIANCE ENERGY CO. BATELEUR and NEEL have likely continued to load and transport Iranian energy products, having done so likely over eleven times during SAI SABURI’s tenure as their commercial manager.

SAI SABURI is being designated pursuant to section 3(a)(ii) of E.O. 13846 for knowingly engaging in a significant transaction for the purchase, acquisition, sale, transport, or marketing of petroleum or petroleum products from Iran. BATELEUR and NEEL are being identified as property in which SAI SABURI has an interest.

BREEZE MARINE ASSET MANAGEMENT (BREEZE) is a commercial management company registered in the Republic of the Marshall Islands and based in the United Arab Emirates. It is the commercial manager of the crude oil tanker ARTEMIS III (IMO: 9102241). During its tenure as commercial manager, the ARTEMIS III loaded and transported over fourteen million barrels of Iranian crude oil.

BREEZE is being designated pursuant to section 3(a)(ii) of E.O. 13846 for knowingly engaging in a significant transaction for the purchase, acquisition, sale, transport, or marketing of petroleum or petroleum products from Iran. ARTEMIS III is being identified as property in which BREEZE has an interest.

ISLE INNOVATION INC (ISLE INNOVATION) is the Panama-based commercial manager of the crude oil tanker RIEVERIA I (IMO: 9286229). During ISLE INNOVATION’s tenure as commercial manager, the RIEVERIA I has loaded and transported Iranian crude oil in three dangerous ship-to-ship transfers with tankers sanctioned for moving Iranian crude oil, while conducting dark activity.

ISLE INNOVATION is being designated pursuant to section 3(a)(ii) of E.O. 13846 for knowingly engaging in a significant transaction for the purchase, acquisition, sale, transport, or marketing of petroleum products from Iran. RIEVERIA I is being identified as property in which ISLE INNOVATION has an interest.

SANCTIONS IMPLICATIONS

As a result of today’s actions, and in accordance with E.O. 13846, all property and interests in property of the designated persons described above that are in the United States or in possession or control of U.S. persons are blocked and must be reported to the Department of Treasury’s Office of Foreign Assets Control (OFAC). Additionally, all entities owned, either directly or indirectly, 50 percent or more by one or more blocked persons are also blocked.

All transactions by U.S. persons or within (or transiting) the United States that involve any property or interests in property of designated or otherwise blocked persons are prohibited unless authorized by a general or specific license issued by OFAC or exempt. These prohibitions include the making of any contribution or provision of funds, goods, or services by, to, or for the benefit of any blocked person and the receipt of any contribution or provision of funds, goods, or services from any such person.

The power and integrity of U.S. government sanctions derive not only from the U.S. government’s ability to designate and add persons to the Specially Designated Nationals and Blocked Persons (SDN) List, but also from its willingness to remove persons from the SDN List consistent with the law. The ultimate goal of sanctions is not to punish, but to bring about a positive change in behavior.

Petitions for removal from the SDN List may be sent to: OFAC.Reconsideration@treasury.gov. Petitioners may also refer to the Department of State’s Delisting Guidance page.