The US House of Representatives is poised to vote Monday on legislation aimed at countering China’s purchase of Iranian crude oil as part of package of bills being brought to the floor in response to Iran’s attack on Israel.
The legislation, H.R. 5923, Iran-China Energy Sanctions Act of 2023, would expand secondary sanctions against Iran to cover all transactions between Chinese financial institutions and sanctioned Iranian banks used to purchase of petroleum and petroleum products, according to a summary of the bill. The legislation also requires the US to make a determination annually whether Chinese financial institutions have engaged in sanctionable conduct.
About 80% of Iran’s roughly 1.5 million barrels a day of oil exports is sent to independent refineries in China known as “teapots,” according to the summary. The bill, introduced by New York Republican Representative Mike Lawler, clarifies that any transaction by a Chinese financial institution for the purchase of oil from Iran qualifies as a “significant financial transaction” for sanctions purposes.
The measure, unanimously approved by the House Financial Services Committee in November, is one of several Iran-related bills slated to be considered Monday under an expedited procedure typically used to quickly-pass legislation that has bipartisan support.
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