OFAC Sanctions Iran Petrochemical Company, Subsidiaries
The Treasury’s Office of Foreign Assets Control sanctioned the Persian Gulf Petrochemical Industries Company (PGPIC), Iran’s “largest and most profitable petrochemical holding group,” as well as 39 of its subsidiaries, Treasury said in a June 7 press release. PGPIC was sanctioned for funding Khatam al-Anbiya Construction Headquarters, which Treasury said is the “engineering conglomerate” of the Islamic Revolutionary Guard Corps.
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“This action is a warning that we will continue to target holding groups and companies in the petrochemical sector and elsewhere that provide financial lifelines to the IRGC,” Treasury Secretary Steven Mnuchin said in a statement.
Treasury said PGPIC and its “vast network” of subsidiaries hold 40 percent of Iran’s total petrochemical production capacity and is responsible for 50 percent of its petrochemical exports. The sanctions target PGPIC for its connection with Khatam al-Anbiya and its network of foreign-based subsidiaries and sales agents.
The IRGC and its holdings, including Khatam al-Anbiya, have a “dominant presence” in Iran’s economy and maintain “extensive economic interest” in the country’s defense, construction, aviation, oil, banking, metal, auto and mining industries, Treasury said, adding that PGPIC has awarded “major engineering, procurement and construction contracts” to Khatam al-Anbiya. Those profits support the IRGC, including the spread of weapons of mass destruction and terrorism, according to the press release.
PGPIC’s subsidiaries include more than 30 companies based in Iran along with United Kingdom-based NPC International and Philippines-based NPC Alliance Corporation, Treasury said. Treasury also sanctioned two companies based in the United Arab Emirates -- Atlas Ocean and Petrochemical, and Naghmeh FZE -- for acting as sales agents on behalf of PGPIC.
Treasury said many of the now-sanctioned entities “export products and have known business ties with companies around the globe” and warned businesses to tighten their compliance. “Treasury urges international companies to ensure they are conducting the necessary due diligence to avoid engaging in sanctionable activity with entities that support the Iranian regime’s malign activity,” the press release said.