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China: U.S. Treasury Department Sanctions Chinese Oil Trader Over Iran Sanctions Violations

1 MIN READJul 23, 2019 | 13:21 GMT

What Happened: The U.S. Treasury Department has placed sanctions on Chinese oil trader Zhuhai Zhenrong Corp. and its chief executive officer, alleging that it has violated U.S. sanctions against Iran, Reuters reported July 23.

Why It Matters: The United States previously sanctioned Zhuhai Zhenrong Corp., one of China's largest customers of Iranian oil, under the administration of former President Barack Obama over gasoline sales to Iran. The firm continued to import Iranian crude despite U.S. penalties against Iran and a lack of sanctions waivers,  which Washington ceased to offer in early May in an effort to ramp up the pressure on the Islamic republic.

Background: Zhuhai Zhenron Corp.'s exposure to the United States remains limited, while China has long created specialized companies to handle business with countries under U.S. sanctions, including North Korea and Iran.

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