Illicit Iranian Oil Unloaded in China Despite Sanctions

Iran International Newsroom
An Aframax-sized oil tanker sold to Venezuela is seen in Bushehr coast, Iran June 8, 2022.
An Aframax-sized oil tanker sold to Venezuela is seen in Bushehr coast, Iran June 8, 2022.

In defiance of US sanctions, illicit Iranian oil is reportedly being offloaded once again in China, as Iran continues to find ways to circumvent international restrictions.

The advocacy group United Against Nuclear Iran (UANI) has disclosed through satellite imagery that two vessels, HECATE and ELVA, are involved in the unloading of sanctioned Iranian oil at Dongjiakou port in China.

According to Claire Jungman, Chief of Staff at UANI, "HECATE was loaded from the Iranian tanker DOVER on March 25 and was designated as an SDGT (Specially Designated Global Terrorist) entity on April 4. ELVA, known for previous sanctions violations, loaded oil from Kharg Island, Iran, on April 2."

Jungman added, "China's continued disregard for counterterrorism sanctions is enabling Iran's financing of terrorism."

Iran utilizes a complex network of entities and intermediaries to sell its oil to third parties, thereby evading the imposed sanctions. Iran reportedly channels some of its oil revenues to state organizations such as the Revolutionary Guard to support their budgets indirectly, circumventing direct financial allocations.

The transactions are typically managed by state entities and business figures closely linked to the regime, generating significant profits.

Despite international sanctions, Iran's oil exports have seen a considerable increase, from 400,000 barrels per day post-2019 US sanctions to over 1,500,000 barrels per day currently.

Behrouz Mohebbi Najmabadi, a member of parliament’s budget committee, said in December, "By utilizing the capacities of neighboring and special allied countries such as the Shanghai Cooperation Organization, BRICS, and regional agreements, today Iran's crude oil sales have exceeded 1.5 million barrels per day."