Chinese Shipbuilder Cut Off From U.S. Financial System Over Russia Ties

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What’s new: A Chinese shipbuilder has been placed on a U.S. government blacklist that effectively cuts it off from the U.S. financial system for what Washington said was the company’s involvement in a Russian energy project.

The shipbuilder, Penglai Jutal Offshore Engineering Heavy Industries Co. Ltd., has been included on Washington’s Specially Designated Nationals and Blocked Persons List (SDN), according to a stock exchange filing by Penglai Jutal’s parent dated June 13.

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A Chinese shipbuilder, Penglai Jutal Offshore Engineering, is blacklisted by the U.S. for involvement in Russia's Arctic LNG 2 project.
The blacklist restricts transactions with U.S. entities and access to U.S. financial systems, impacting the company's business.
The U.S. sanctions aim to diminish Russia's capabilities in the war against Ukraine.

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Who’s Who

Penglai Jutal Offshore Engineering Heavy Industries Co. Ltd.: Penglai Jutal Offshore Engineering Heavy Industries Co. Ltd. is a Chinese shipbuilder involved in constructing offshore oil and natural gas exploration facilities. The company has been placed on the U.S. government's Specially Designated Nationals and Blocked Persons List (SDN) due to its participation in Russia's Arctic LNG 2 project, which provides material support. As a result, it faces significant barriers to conducting transactions with U.S. entities and accessing the U.S. financial system.

Jutal Offshore Oil Services Ltd.: Jutal Offshore Oil Services Ltd. is the parent company of Penglai Jutal Offshore Engineering Heavy Industries Co. Ltd., which has been added to the U.S. Specially Designated Nationals and Blocked Persons List for its involvement in Russia's Arctic LNG 2 project. The company is currently assessing the “potential adverse impact” of the sanctions on its business operations.

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What Happened When

June 12, 2024：: The U.S. State Department announced that it had decided to sanction Penglai Jutal for providing material support for Russia’s Arctic LNG 2 project.

June 13, 2024：: Penglai Jutal’s parent company filed a stock exchange report stating that Penglai Jutal Offshore Engineering Heavy Industries Co. Ltd. has been included on Washington’s Specially Designated Nationals and Blocked Persons List (SDN).

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