On June 12 local time, the U.S. Department of the Treasure and the Department of State announced an increase in sanctions against Russia, adding more than 300 new sanctions.
A press release issued by the U.S. Department of the Treasury indicates that the Office of Foreign Assets Control (OFAC) issued a ruling under Executive Order 14024. The sanctions cover more than 300 individuals and entities inside and outside Russia, covering Asia, the Middle East, Europe, Africa, Central Asia and the Caribbean.
A total of 45 Chinese entities and individuals (including those registered in Hong Kong) are reportedly on the Specially Designated Nationals List (SDN List) made public by the U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC). Notably, Penglai Jutal Offshore Engineering Heavy Industry Co., Ltd. (PJOE) also appears on the SDN list, becoming the first Chinese offshore shipyard to be sanctioned for its involvement in Russian projects.
On June 13, Jutao Offshore Oil Services announced that its wholly-owned subsidiary PJOE has been placed on the SDN list by the U.S. Department of the Treasury’s OFAC.
U.S. Executive Order 14024 provides that “all property and interests in property located in the United States and thereafter coming within the United States, or now or hereafter in the possession or control of any U.S. person determined by the Secretary of the Treasury to be providing substantial assistance, sponsorship, or financial, material, or technical support, or furnishing of goods or services, to a person whose property and interests in property have been frozen pursuant to the Order property and interests in property shall be frozen and shall not be transferred, paid, exported, withdrawn, or otherwise disposed of.”
Jutao Offshore Oil Services said that although it has no assets or operations in the United States, a preliminary assessment indicates that this incident could have an adverse impact on the company’s business and prospects.
The biggest potential risk to PJOE’s inclusion in the SDN list could affect the company’s bids for international module and mooring system projects, it said. The company is currently bidding for a number of module projects such as the SBM Suriname FPSO module in the Netherlands and the Cedar LNG module in Canada.
According to PJOE’s official website, the company was put into operation in May 2006, located in Penglai Economic Development Zone, Yantai City, Shandong Province. Construction units fabricated by PJOE range from jackets, topsides and modules for leading oil and gas companies to hulls, buoys, turrets and highly complicated large offshore cranes, including design, procurement, manufacturing, pre-commissioning and shipping. The yard is large enough to handle several projects simultaneously.
It has self-operated open wharf, 6 large slipways of 6,000-50,000 tons carrying capacity, a coastline of 700 meters long, with a depth of -13.5 meters, which can provide a full range of services for the world’s oil and gas development and turnkey engineering companies for large-scale marine and onshore construction projects.
In addition to sanctions against “Russia-related” projects, the United States has launched a “trade war” against China’s maritime, logistics and shipbuilding industries earlier this year.
U.S. local time on March 12, the United States Steelworkers (USW) and other five major trade union organizations filed a petition formally requesting that the Biden administration launch a trade investigation into China’s “unreasonable and discriminatory” practices in the maritime, logistics and shipbuilding industries.
On April 17, U.S. local time, the Office of the United States Trade Representative (USTR) announced the launch of a 301 investigation into China’s maritime, logistics and shipbuilding industries.
China strongly opposes and is firmly against this move. We urge the U.S. to respect the facts and multilateral rules, immediately stop its wrongful practices and return to the rules-based multilateral trading system. China will closely follow the progress of the 301 investigation and will take all necessary measures to resolutely defend its rights and interests.