US imposes sanctions on Iran's largest petchem group, PGPIC

Source: ICIS News

2019/06/07

HOUSTON (ICIS)--The US Treasury Department has imposed sanctions on Persian Gulf Petrochemical Industries Co (PGPIC), Iran's largest and most profitable petrochemical group, alleging that it has provided financial support to a construction firm of the Islamic Revolutionary Guard Corps, it said on Friday.

Iran, satellite image. Source: Planet Observer/UIG/REX/Shutterstock

In addition to PGPIC, the Treasury Department is also sanctioning 39 of its subsidiaries. In all, PGPIC and its subsidiaries account for 40% of Iran's petrochemical capacity and 50% of its exports.

PGPIC was not immediately available to comment.

The Treasury Department is sanctioning PGPIC because the company allegedly provided financial support to Khatam al-Anbiya Construction Headquarters (Khatam al-Anbiya). Khatam al-Anbiya, in turn, is allegedly the engineering conglomerate of the Revolutionary Guard.

The US alleges that the Revolutionary Guard supports terrorism, commits human-rights abuses and spreads weapons of mass destruction.

Under the sanctions, any US company needs to report to the Treasury Department its ownership of any property or stake in any of the Iranian companies being targeted by the Treasury Department.

The sanctions also prohibit US companies from any dealings with the Iranian companies. Anyone that does business with the companies could themselves become sanctioned by the Treasury Department.

Banks or other financial institutions outside of the US that do a large amount of businesses with the companies could face sanctions as well.

The following lists the PGPIC companies that are being targeted for sanctions.

Arvand Petrochemical Co
Bandar Imam Abniroo Petrochemical Co
Bandar Imam Besparan Petrochemical Co
Bandar Imam Faravaresh Petrochemical Co
Bandar Imam Kharazmi Petrochemical Co
Bandar Imam Kimiya Petrochemical Co
Bandar Imam Petrochemical Co
Bu Ali Sina Petrochemical Co
Fajr Petrochemical Co
Hengam Petrochemical Co
Hormoz Urea Fertilizer Co
Iranian Investment Petrochemical Group Co
Iranian Petrochemical Investment Development Management Co
Karoun Petrochemical Co
Khouzestan Petrochemical Co
Lordegan Urea Fertilizer Co
Mobin Petrochemical Co
Modabberan Eqtesad Co
Nouri Petrochemical Co
Pars Petrochemical Co
Pazargad Non Industrial Operation Co
Persian Gulf Apadana Petrochemical Co
Persian Gulf Bid Boland Gas Refinery Co
Persian Gulf Petrochemical Industry Commercial Co (PGPICC)
Persian Gulf Fajr Yadavaran Gas Refinery Co
Petrochemical Industries Development Management Co
Rahavaran Fonoon Petrochemical Co
Shahid Tondgoyan Petrochemical Co
Urmia Petrochemical Co
Hemmat Petrochemical Co
Petrochemical Non-Industrial Operations & Services Co

Iranian Investment Petrochemical Group Co either owns or controls Ilam Petrochemical Co, Gachsaran Polymer Industries and Dah Dasht Petrochemical Industries. As a result, the US also imposing sanctions on those companies. It is also targeting Broojen Petrochemical Co, because PGPIC subsidiaries own stakes in the firm

Foreign subsidiaries receiving sanctions include the following:
NPC International, based in the UK
NPC Alliance Corp, based in the Philipines
Atlas Ocean and Petrochemical, based in the United Arab Emirates (UAE)
Naghmeh FZE, based in the UAE

Image above shows a map of Iran. Source: Planet Observer/UIG/REX/Shutterstock