China's Bank of Kunlun Denies Owning Ship Carrying Oil From Iran
◢ Bank of Kunlun, a Chinese lender, said it doesn’t own a ship that the U.S. pinpointed last week as carrying Iranian oil. A senior U.S. official said May 28 that the ship, the PACIFIC BRAVO was the property of the bank and was headed toward Hong Kong.
By Karen Leigh
Bank of Kunlun, a Chinese lender, said it doesn’t own a ship that the U.S. pinpointed last week as carrying Iranian oil.
A senior U.S. official said May 28 that the ship, the PACIFIC BRAVO was the property of the bank and was headed toward Hong Kong. The official, who spoke on condition of anonymity, warned that any entity in the Asian financial hub that did business with the ship would be exposed to U.S. sanctions.
“After our checks, the vessel PACIFIC BRAVO and the goods it carries, have nothing to do with Bank of Kunlun,” the bank said in an emailed statement. It didn’t provide further information.
Hong Kong’s government has “strictly” implemented United Nations Security Council sanctions, which don’t impose “any restrictions on the export of petroleum from Iran,” a spokesperson for the city’s Commerce and Economic Development Bureau said last week in response to a question about the U.S. warning.
U.S. Warning
Washington wants to put Hong Kong and China on notice that it will aggressively and consistently enforce its sanctions on Iran, the senior U.S. official said.
While the U.S. official said the tanker is heading to Hong Kong, ship-tracking data compiled by Bloomberg showed a vessel called the Pacific Bravo off the coast of Indonesia on Monday.
President Donald Trump has increased pressure on Iran since taking office, exiting the landmark 2015 nuclear deal that gave the Islamic Republic sanctions relief in exchange for curbs on its disputed nuclear program.
Reuters reported in October that the Bank of Kunlun—once Beijing’s major channel for transactions with Iran—would stop handling such payments due to sanctions pressure.
Photo Bloomberg
State Department Says No Change in Plan to End Iran Oil Waivers
◢ The U.S. State Department sought to quash speculation that the Trump administration is easing its clampdown on Iranian oil exports after a sanctions waiver program ended May 2, saying there has been no softening in the American stance that any country buying Iran’s oil would be subject to penalties.
By Nick Wadhams
The U.S. State Department sought to quash speculation that the Trump administration is easing its clampdown on Iranian oil exports after a sanctions waiver program ended May 2, saying there has been no softening in the American stance that any country buying Iran’s oil would be subject to penalties.
A U.S. decision not to renew the six-month waivers allowing limited exports is final and no more trade will be permitted, Brian Hook, the U.S. special representative for Iran, said in a statement to Bloomberg News on Thursday. The U.S. had previously granted waivers, known as significant reduction exceptions, to eight governments in November—China, India, South Korea, Japan, Turkey, Taiwan, Greece and Italy.
“Our firm policy is to completely zero out purchases of Iranian oil—period,” Hook said. “Any new purchases of oil initiated after the expiration of the SREs on May 2 will be subject to U.S. sanctions, even if a country had not met its previously negotiated purchase caps during the SRE period from November to May 2.”
The statement was intended to clarify comments Hook made during a news briefing earlier Thursday. Those remarks were construed as saying the U.S. would allow countries to keep buying Iranian oil after May 2 as long as they remained under the limits the U.S. set out when it originally granted the waivers.
For weeks, oil traders have asked how tough the U.S. stance really is and whether there would be any loopholes for buyers of Iranian crude following the decision to end the waivers. Thursday’s statement sought to clarify that the only possible exception to the position would be for oil that was already en route to its destination before the waivers expired.
“If oil was purchased, loaded and en route to its destination prior to the expiration of the significant reduction exceptions on May 2, these cargoes would not exceed the agreed-to caps on imports of Iranian crude oil negotiated under the now-expired SREs,” Hook said.
Photo:
Hong Kong Rejects U.S. Warning on Ship Breaching Iran Sanctions
◢ Hong Kong dismissed U.S. warnings that it could face penalties if it it does business with an oil tanker headed for the city that allegedly violated sanctions on Iran. The city’s government has “strictly” implemented United Nations Security Council sanctions, which don’t impose “any restrictions on the export of petroleum from Iran,” a spokesperson for Hong Kong’s Commerce and Economic Development Bureau said on Wednesday.
By Karen Leigh and Shelly Banjo
Hong Kong dismissed U.S. warnings that it could face penalties if it it does business with an oil tanker headed for the city that allegedly violated sanctions on Iran.
The city’s government has “strictly” implemented United Nations Security Council sanctions, which don’t impose “any restrictions on the export of petroleum from Iran,” a spokesperson for Hong Kong’s Commerce and Economic Development Bureau said on Wednesday in response to a question about the U.S. warning.
“Certain countries may impose unilateral sanctions against certain places on the basis of their own considerations,” they said. “Those sanctions are outside the scope of the UN Security Council sanctions” implemented by Hong Kong.
Washington wants to put China and the autonomous city on notice that it will aggressively and consistently enforce its Iran sanctions, a senior U.S. official said on Tuesday, speaking on condition of anonymity. The official said China would be informed that any entity doing business with the ship would expose it to U.S. sanctions.
The attention levied on this single vessel, the PACIFIC BRAVO, underscores Washington’s desire to stymie Iran’s oil exports. Relations between the two sides have deteriorated sharply in recent weeks, following President Donald Trump’s pledge to force Iran’s vital oil exports down to zero and a revocation of key sanctions waivers.
The PACIFIC BRAVO is owned by China’s Bank of Kunlun, according to the senior U.S. official. Reuters reported in October that the bank—once Beijing’s major channel for transactions with Iran—would stop handling such payments due to sanctions pressure.
Next Stop
While the U.S. official said the tanker is heading to Hong Kong, ship-tracking data compiled by Bloomberg shows a vessel called the PACIFIC BRAVO off the coast of Sri Lanka and signaling Indonesia as its next stop.
The senior U.S. official said it was imperative that Hong Kong authorities prevent the vessel from docking or allowing local entities from providing services to ships that might misrepresent themselves in order to avoid exposing themselves to sanctions violations.
Washington wants to make clear that anyone doing business with Iran, won’t be doing business with the U.S., the official said, adding that there would be more sanctions to come.
Earlier on Wednesday, Hong Kong’s Marine Department said that at present, it “has no information showing if the respective vessel will enter or pass by Hong Kong waters.”
Rising Tensions
Reuters reported on May 16 that a tanker in violation of U.S. sanctions had unloaded close to 130,000 tons of Iranian fuel oil into storage tanks near the eastern Chinese city of Zhoushan. It had earlier reported that a batch of Iranian fuel oil had sidestepped American sanctions on petroleum exports by using ship-to-ship transfers involving four vessels including that tanker—the Marshal Z.
Trump has increased pressure on Iran since taking office, exiting the landmark 2015 nuclear deal that gave the Islamic Republic sanctions relief in exchange for curbs on its disputed nuclear program.
Senior Iranian officials have made recent tours of neighboring countries in an effort to boost support, after the U.S. announced it would increase troop deployments in the Middle East and sell weapons to some of Iran’s rivals.
Photo: Bloomberg
U.S. Warns Hong Kong to Avoid Tanker in Breach of Iran Sanctions
◢ The U.S. warned Hong Kong that it could face penalties if it does business with PACIFIC BRAVO, an oil tanker headed for the city that allegedly violated sanctions on Iran. Washington wants to put China and the autonomous city on notice that it will aggressively and consistently enforce its Iran sanctions, a senior U.S. official said on Tuesday, speaking on condition of anonymity.
By Karen Leigh and Shelly Banjo
The U.S. warned Hong Kong that it could face penalties if it does business with an oil tanker headed for the city that allegedly violated sanctions on Iran.
Washington wants to put China and the autonomous city on notice that it will aggressively and consistently enforce its Iran sanctions, a senior U.S. official said on Tuesday, speaking on condition of anonymity. The official said China would be informed that any entity doing business with the ship would expose it to U.S. sanctions.
The attention levied on this single vessel, the PACIFIC BRAVO, underscores Washington’s desire to stymie Iran’s oil exports. Relations between the two sides have deteriorated sharply in recent weeks, following President Donald Trump’s pledge to force Iran’s vital oil exports down to zero and a revocation of key sanctions waivers.
The PACIFIC BRAVO is owned by China’s Bank of Kunlun, according to the senior U.S. official. Reuters reported in October that the bank—once Beijing’s major channel for transactions with Iran—would stop handling such payments due to sanctions pressure.
Next Stop
While the U.S. official said the tanker is heading to Hong Kong, ship-tracking data compiled by Bloomberg shows a vessel called the PACIFIC BRAVO off the coast of Sri Lanka and signaling Indonesia as its next stop.
The senior U.S. official said it was imperative that Hong Kong authorities prevent the vessel from docking or allowing local entities from providing services to ships that might misrepresent themselves in order to avoid exposing themselves to sanctions violations.
Washington wants to make clear that anyone doing business with Iran, won’t be doing business with the U.S., the official said, adding that there would be more sanctions to come.
An emailed request for comment to the Hong Kong Monetary Authority wasn’t immediately returned on Tuesday evening. The city’s Maritime Department referred an earlier request to the relevant bureau.
Rising Tensions
Reuters reported on May 16 that a tanker in violation of U.S. sanctions had unloaded close to 130,000 tons of Iranian fuel oil into storage tanks near the eastern Chinese city of Zhoushan. It had earlier reported that a batch of Iranian fuel oil had sidestepped American sanctions on petroleum exports by using ship-to-ship transfers involving four vessels including that tanker—the Marshal Z.
Trump has increased pressure on Iran since taking office, exiting the landmark 2015 nuclear deal that gave the Islamic Republic sanctions relief in exchange for curbs on its disputed nuclear program.
Senior Iranian officials have made recent tours of neighboring countries in an effort to boost support, after the U.S. announced it would increase troop deployments in the Middle East and sell weapons to some of Iran’s rivals.
Photo: Bloomberg
