US Sanctions Hit Indian Companies Over Iran Oil Trade
The US Department of State has announced sanctions against six Indian companies accused of knowingly engaging in substantial petroleum and petrochemical transactions with Iran. These firms are alleged to have imported Iranian-origin products including methanol, toluene, polyethylene, and other petrochemicals from January 2024 through January 2025, in violation of existing US sanctions on Iran.
Details of the Sanctions
The six Indian companies sanctioned include:
Alchemical Solutions Private Limited: Imported Iranian petrochemical products valued at over $84 million in 2024.
Global Industrial Chemicals Limited: Acquired Iranian petroleum products such as methanol worth more than $51 million between July 2024 and January 2025.
Jupiter Dye Chem Private Limited: Imported Iranian products including toluene totaling over $49 million.
Ramniklal S Gosalia and Company: Procured Iranian methanol and toluene valued at above $22 million.
Persistent Petrochem Private Limited: Imported approximately $14 million worth of Iranian petrochemicals mainly methanol.
Kanchan Polymers: Obtained Iranian polyethylene valued over $1.3 million, including some trade via UAE intermediaries.
These sanctions freeze all US-based assets owned by these companies or entities controlled by US persons, barring American individuals and businesses from engaging in transactions with them. This action also targets entities with majority ownership linked to the sanctioned firms.
Purpose and Context
The US sanctions form part of a comprehensive effort to enforce restrictions on Iran’s oil and petrochemical exports, which the US alleges fund destabilizing and terrorist activities in the Middle East. These measures reflect Washington’s “maximum pressure” strategy to curb Tehran’s ability to generate illicit revenue.
India has historically maintained trade relations with Iran, especially for oil, though imports have been significantly reduced following earlier sanction periods since 2019. Despite reductions, some indirect or intermediary-based trade has persisted, drawing US scrutiny in the current enforcement.
Sanctioned companies have the option to appeal for removal from the US Treasury’s Specially Designated Nationals list, provided they can demonstrate cessation of restricted activities.
Frequently Asked Questions (FAQ) About US Sanctions on Indian Companies Over Iran Oil Trade
Q1: Which Indian companies have been sanctioned by the US over Iran oil trade?
Six Indian companies including Alchemical Solutions Pvt Ltd, Global Industrial Chemicals Ltd, Jupiter Dye Chem Pvt Ltd, Ramniklal S Gosalia and Company, Persistent Petrochem Pvt Ltd, and Kanchan Polymers.
Q2: What products were involved in the sanctioned trade?
The companies imported Iranian petrochemical products such as methanol, toluene, polyethylene, and other petroleum derivatives.
Q3: What penalties do these sanctions impose?
They freeze all US-based assets of the sanctioned firms and prohibit US persons and businesses from dealing with them. Controlled entities with majority ownership are also affected.
Q4: Why is the US targeting these companies?
The US alleges Iran uses revenues from such petrochemical exports to fund destabilizing activities and terrorism in the Middle East.
Q5: Can the sanctioned companies appeal or seek removal from the list?
Yes, companies may petition the US Treasury’s Office of Foreign Assets Control to be removed if they can prove they have ceased violating sanctions.
Q6: How do these sanctions affect India-US trade relations?
While the sanctions add tension, India continues to balance its trade interests and diplomatic links, and firms must comply with US laws to avoid penalties.
Published on: August 1, 2025
Published by: PAVAN
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