The US Treasury has sanctioned Slogal Energy DMCC, a Dubai-based unit of Sri Lanka’s Laugfs group, for allegedly trading in Iranian LPG. The move highlights increasing scrutiny on companies involved in Iranian petrochemical transactions.
Slogal Energy DMCC named by US Treasury for alleged Iranian LPG shipments to Sri Lanka and Bangladesh
The United States Department of the Treasury’s Office of Foreign Assets Control (OFAC) has officially named Slogal Energy DMCC, a subsidiary of Sri Lanka’s Laugfs group, for its role in the trade of Iranian petrochemicals. According to the Treasury statement, Slogal Energy DMCC and UAE-based Markan White Trading Crude Oil Abroad Co. L.L.C were key players in facilitating the sale and shipment of Iranian LPG to Sri Lanka and other destinations.
The Iranian LPG originated from Persian Gulf Petrochemical Industry Commercial Co. (PGPICC) in Iran. In late 2024, PGPICC and Markan White used Slogal to manage the sale, shipment, and export of millions of dollars’ worth of LPG to Sri Lanka. The shipments reportedly reached end users in both Sri Lanka and Bangladesh between 2024 and 2025.
The report further stated that in 2024, the Palau-flagged vessel MAX STAR delivered Iranian LPG purchased by Slogal to Sri Lanka. In 2025, additional shipments were delivered by the Panama-flagged GAS DIOR. Early in 2025, GAS DIOR carried over 17,000 metric tons of Iranian LPG to Bangladesh for a sanctioned supplier, Octane Energy FZCO.
OFAC said Slogal Energy DMCC, along with several firms based in China and the UAE, was designated under Executive Order 13902 for operating in the Iranian petroleum sector. Several individuals, including some from India, were also listed as blocked persons under the sanctions.
The Treasury further clarified that all property and interests belonging to these blocked entities in the United States or under the control of U.S. persons are frozen and must be reported to OFAC. Entities owned directly or indirectly, 50 percent or more by blocked persons, are also subject to sanctions.
Unless authorized by OFAC, U.S. persons and companies are prohibited from conducting any transactions involving the property or interests of designated entities. Violations of U.S. sanctions could lead to severe civil or criminal penalties, including for foreign individuals and businesses. Financial institutions and global businesses are also at risk of secondary sanctions for engaging in transactions with sanctioned entities.
This action underscores Washington’s firm stance on enforcing Iran-related sanctions and signals heightened global scrutiny of energy transactions involving Iranian products.