Specifically, the sanctions were imposed on COSCO Shipping Tanker (Dalian) Co. and COSCO Shipping Tanker (Dalian) Seaman & Ship Management Co for trading oil with Iran.
Teekay further explains that COSCO Dalian holds a 50% stake in China LNG Shipping (Holdings) Limited (CLNG). In the first place, CLNG was not listed on OFAC;s Order; Yet, given that it holds the 50% of the COSCO company, it qualifies as a “blocked person” under OFAC rules.
[US highlights that the sanctions do not affect COSCO’s other subsidiaries or affiliates, provided that such entities are not owned 50% or more in the aggregate by one or more blocked persons.]
In addition, CLNG holds the 50% of Teekay LNG’s Yamal LNG joint venture, which operates four on-the-water ARC7 LNG carriers and two ARC7 LNG carrier newbuildings. Consequently, Yamal LNG Venture qualifies as a 'blocked person' following OFAC's rules.
In a statement published yesterday, Teekay commented
For clarity, the Teekay Group has not traded and will not trade with Iran and will not act in contravention of any trading sanctions.
In the meantime, the Russian gas producer, NOVATEK holds the 50.1% of the Yamal LNG project. In light of this, the company's statement highlights that
The Yamal LNG project has all the necessary capacities to ensure supplies of LNG produced to customers in accordance with contractual obligations within the agreed timelines.
The company concluded that the solution of this situation is a business matter between Teekay LNG and China LNG Shipping (Holdings) Limited.