What ownership change did Hengli make to its Singapore trading unit after US sanctions, and why was this restructuring done?

Hengli reduced its sanctioned Dalian refinery's stake in Hengli Petrochemical International Pte (Singapore) from 100% to 5%, transferring the remaining 95% to Dalian Changxing International Trade Co. Ltd., a Chinese government-linked trading house; this restructuring was explicitly intended to ensure the Singapore entity is no longer majority-owned by a US-sanctioned party, thereby avoiding 'sanctions by association' and allowing it to continue operations without being treated as blocked under OFAC rules, as confirmed by a notice Hengli sent to its clients.

Which Hengli entity was sanctioned by the US, and what specific allegation did OFAC cite?

The US Treasury Department’s Office of Foreign Assets Control (OFAC) sanctioned Hengli Petrochemical (Dalian) Refinery Co., citing 'alleged links to Iran'—specifically, oil purchases from Iran—as the basis for the designation; Hengli has publicly denied this claim, though the sanction remains in effect.

US-Sanctioned Chinese Refiner Hengli Restructures Singapore Unit

Apr 27, 2026

Hengli Group restructured its Singapore trading arm ownership after US sanctions targeted its Dalian refinery over Iran oil links, transferring majority stake to a government-linked trader to avoid association penalties.

Hengli Restructures Singapore Unit Following US Sanctions on Refinery

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