COLOMBO, Oct. 10 -- The US Treasury has designated Slogal Energy DMCC, a subsidiary of Sri Lanka's Laugfs Holdings, for allegedly facilitating the sale and shipment of Iranian liquefied petroleum gas (LPG) to Sri Lanka and Bangladesh in violation of US sanctions.

The Office of Foreign Assets Control (OFAC) of the US Department of the Treasury said in a statement that United Arab Emirates-based Markan White Trading Crude Oil Abroad Co. L.L.C (Markan White) and Slogal Energy DMCC "play a key role in enabling the sale and shipment of Iranian LPG to Sri Lanka".

According to the Treasury, Iranian petrochemicals were procured from Iran-based petrochemical broker Persian Gulf Petrochemical Industry Commercial Co. (PGPICC) by Dubai-based interm...