Sojitz

Sojitz (Hong Kong) Limited (“Sojitz HK”), a Hong Kong, China-based company that engages in offshore trading and cross-border trade financing, has agreed to pay $5,228,298 to settle its potential civil liability for apparent violations of the Iranian Transactions and Sanctions Regulations (ITSR). The apparent violations occurred when Sojitz HK made U.S. dollar payments through U.S. financial institutions for Iranian-origin high density polyethylene resin (HDPE) from its bank in Hong Kong to the HDPE supplier’s banks in Thailand.

Flying in the face of American sanctions, which bans Iranian oil trade, Tehran has managed to dramatically increase its oil exports for 2021 compared to the previous year. By September 2021 – when Iranian Oil Minister Javad Owji said, “there is strong will in Iran to increase oil exports despite the unjust and illegal U.S. sanctions” – Iran had already surpassed the amount of oil it exported in the entirety of 2020.

Why would Russia, the world’s number two oil producer, look to buy oil from Iran?  The answer is not exactly clear, but since August, we have seen two Russian-flagged tankers together carrying more than 1.5 million barrels, apparently en-route to Russia. Both have signaled their destination as Port Kavkaz, a small Russian port on the northern section of the Black Sea, at the entrance to the Sea of Azov. Russia would be a new – and for the U.S., a concerning – option for Iranian crude exporters.

 

ICYMI: UANI Evidence Of Iran’s Illicit Oil Shipping Activities Highlighted In Leading Maritime Industry Publications

United Against Nuclear Iran (UANI)’s campaign to monitor and report illegal Iranian oil transfers and international sanctions violations was highlighted in major maritime industry publications, including Lloyd’s List, TradeWinds, and Splash Maritime and Offshore News this month. 

As the Iran nuclear talks remain in a state of inertia, Iranian crude exports held steady for August, totaling just above 1,000,000 barrels of oil per day (bpd), with China again the number one destination and Syria number two.  Destination “unknown” meanwhile increased its share by 22,210 barrels to almost 250,000 from July. 

 

Country

August 2021 - Barrels Per Day (bpd)

First Bank SA

First Bank SA, located in Romania, and its U.S. parent company, JC Flowers & Co. have agreed to remit $862,318 to settle potential civil liability for First Bank’s processing of transactions in apparent violation of OFAC’s Iran and Syria sanctions programs. Specifically, First Bank processed 98 commercial transactions totaling $3,589,189 through U.S. banks on behalf of parties located in Iran and Syria. In 2018, after JC Flowers acquired a majority ownership interest in First Bank, First Bank processed Euro-denominated payments for persons located in Iran.

In the first such incident since the 2006 Israel-Hezbollah War, at 11:15 AM on Friday, August 6, 2021 Hezbollah militants launched a rocket barrage into Israeli-held Har Dov, also known as the Shebaa Farms. Video released by Hezbollah of the strike showed a rocket-launcher mounted on an Isuzu Bongo truck firing twenty rockets into Israeli-held territory.

On August 5, Ebrahim Raisi was sworn in as the president of the Islamic Republic on the heels of major protests, and ongoing strikes in the strategic energy sector. Beginning in June, thousands of workers in the energy sector including petrochemical plants went on strike to protest late payment, low wages, and poor working and living conditions.

Alfa Laval Inc.

Alfa Laval Inc. (“AL U.S.”), a company located in Richmond, Virginia, has agreed to pay $16,875 to settle its potential civil liability for apparent violations of the Iranian Transactions and Sanctions Regulations, 31 C.F.R. part 560 (“ITSR”), on behalf of its former subsidiary (now an operating unit) Alfa Laval Tank, Inc. (“AL Tank”), located in Exton, Pennsylvania. AL U.S.’s ultimate parent company is Alfa Laval AB, which is headquartered in Sweden.

Alfa Laval Middle East Ltd.

Alfa Laval Middle East Ltd. (“AL Middle East”), a company located in Dubai, United Arab Emirates that sells fluid handling and other equipment for the energy industry and other sectors, has agreed to pay $415,695 to settle its potential civil liability for apparent violations of the Iranian Transactions and Sanctions Regulations, 31 C.F.R. part 560 (“ITSR”). AL Middle East is the head regional office for the Middle East and Southeast Africa for its ultimate parent company, Sweden based Alfa Laval AB.