May 12, 2026 [Reuters]- Hengli Petrochemical International, the ​former Singapore trading arm of sanctions-hit Hengli ‌Petrochemical (Dalian) Refinery, plans to cease operations, four industry sources said on Monday.

The operation is likely to wind ​down in late May, three of the ​sources said.

China-based Hengli Petrochemical (Dalian) did not respond ⁠immediately to an emailed request for comment.

Hengli ​Petrochemical International employed about 100 people and traded ​mostly oil and petrochemical derivatives before the parent company was placed under U.S. sanctions, two of the people ​said.

Some staff have been told they were ​being made redundant while some are to be moved ‌to ⁠other parts of the Hengli group that were not under U.S. sanctions, some of the sources said.

The sanctions on Hengli Petrochemical (Dalian) Refinery were ​imposed by ​the U.S. ⁠Treasury last month over alleged purchases of Iranian oil, which Hengli denies.

Shortly ​after the U.S. move, Hengli Group restructured the ​Singapore ⁠unit’s ownership, reducing Hengli Petrochemical (Dalian) Refinery’s holding from 100% to 5%, with Dalian Changxing International ⁠Trade, ​a local Chinese government entity, ​assuming the 95% stake.