Laugfs has suspended operations of its Dubai unit SLOGAL Energy DMCC and launched a legal and compliance review after the US Treasury’s Office of Foreign Assets Control designated the entity for alleged trade in Iranian-origin LPG. The company says it will seek exclusion from the sanctions list.
Laugfs suspends SLOGAL operations and seeks delisting after US action over Iran LPG trades.
Laugfs has taken immediate action to halt commercial operations of its Dubai subsidiary, SLOGAL Energy DMCC, following its designation by the US Treasury for allegedly trading Iranian LPG. The move comes as part of a wider US effort to target companies involved in Iran-linked petroleum and petrochemical trade.
In an official statement, Laugfs stressed that SLOGAL has never knowingly engaged in or facilitated trade with sanctioned entities or products. The company stated that all its transactions were supported by certificates of origin and proper Know Your Customer documentation to verify legitimate sources of supply.
All operations of SLOGAL Energy have now been suspended, and a comprehensive legal and compliance review has been launched with the support of US sanctions counsel. Laugfs announced plans to file a formal petition to remove SLOGAL from the Specially Designated Nationals (SDN) list under Executive Order 13902.
The company clarified that its domestic LPG distribution in Sri Lanka remains unaffected by the development. Its core operations and financial position are stable as it focuses on legal measures to challenge the designation.
The OFAC designation carries serious commercial consequences, including restrictions on transactions with US persons and increased scrutiny from international financial institutions. Laugfs aims to resolve the issue through proper legal channels, demonstrating compliance and transparency to restore normal trading relationships.
Industry analysts note that such delisting petitions can be lengthy, but the company’s swift response and clear compliance procedures could support its case. The situation will be closely monitored by market participants and regulatory observers as the review process unfolds.