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

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 Secretary of State Hillary Rodham Clinton, Sens. Jon Kyl, R-Ariz., and Chuck Schumer, D-N.Y., say the Chinese company has violated a new U.S. law aimed at discouraging foreign investment in Iran.

A spokesman for the Chinese Embassy in Washington said China strongly opposes sanctions against Iran’s nuclear activities beyond those imposed by the United Nations, which he said should be followed by all members.

The letter is aimed at prodding the administration to enforce the U.S. 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.

Wang Baodong, the Chinese Embassy spokesman, told The Associated Press that China is “strongly opposed to unilateral sanctions beyond the relevant U.N. resolutions on Iranian nuclear issues, which are the guidelines that all U.N. members should strictly follow.”

He said China does not want the United States to allow “damaging developments” that would “harm China-U.S. relations and bilateral economic and trade cooperation.”

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.