US lawmakers urge penalties for Chinese oil company over investments in Iran despite sanctions

US lawmakers urge penalties for Chinese company

WASHINGTON — Two senior senators are urging the Obama administration to punish the Chinese National Petroleum Co. for investing in Iran.

In a letter to U.S. Secretary of State Hillary Rodham Clinton, Republican Sen. Jon Kyl and Democratic Sen. Charles Schumer say the Chinese company has violated a new U.S. law aimed at discouraging foreign investment in Iran.

The letter is aimed at prodding the administration to enforce the law generally. It singles out the Chinese company specifically, however, for its agreement last year to invest in Iran’s South Azadegan oil field.

“The administration should penalize CNPC, and other Chinese entities, for helping Iran evade international pressure and undermine the cooperation we’ve obtained from allies like Japan and South Korea,” the letter says.

The lawmakers also cite two other Chinese companies, Sinopec and Zhuhai Zhenrong, and the Turkish energy company Turpas.

Obama signed the Iran Sanctions Act into law in July. It focuses on Iran’s powerful Revolutionary Guard and the country’s imports of gasoline and other refined energy products. Among other aims, it seeks to penalize foreign companies that help Iran’s energy sector.