US sanctions 6 Indian firms over Iran oil trade, $220 million in deals under scrutiny

Time of India

4 days ago

The US government has imposed sanctions on six Indian companies accused of importing and marketing Iranian petroleum and petrochemical products. The sanctions, announced by the
US Department of State
on Wednesday, are part of a larger global move targeting 20 entities involved in Iran's oil trade.
'These companies have collectively imported tens of millions of dollars' worth of Iranian-origin petrochemicals,' the State Department said, adding that such transactions 'generate billions of dollars in illicit funds for Iran's destabilising activities.'
The US said in its statement, the Iranian regime 'continues to fuel conflict in the Middle East to fund its destabilizing activities." It added, 'Today, the United States is taking action to stem the flow of revenue that the regime uses to support terrorism abroad, as well as to oppress its own people."
Who's been named?
As reported by ANI, at the top of the list is
Alchemical Solutions Private Limited
. According to the US, the firm imported more than USD 84 million worth of Iranian petrochemical goods between January and December 2024.
Global Industrial Chemicals Limited
is alleged to have acquired Iranian methanol and other substances valued above USD 51 million from July 2024 to January 2025.
Jupiter Dye Chem Private Limited
reportedly imported over USD 49 million worth of Iranian-origin products, including toluene, in the same period.
Ramniklal S Gosalia and Company is accused of sourcing methanol and toluene from Iran, amounting to more than USD 22 million.
Persistent Petrochem Private Limited allegedly brought in roughly USD 14 million worth of methanol between October and December 2024.
Kanchan Polymers, though on the lower end, is said to have imported over USD 1.3 million worth of polyethylene from Iran, with some shipments reportedly facilitated by Tanais Way General Trading LLC, based in the UAE.
What the sanctions mean
The action freezes any assets these firms hold in the United States or under US control. American citizens and companies are now banned from doing business with them. The restrictions also apply to any firm in which the sanctioned entities have a 50 per cent or greater stake.
'All property and interests in the property of the designated persons that are in the United States or in the possession or control of U.S. persons are blocked,' the State Department said in its official release. 'All related transactions are now prohibited without specific authorisation from the Office of Foreign Assets Control (OFAC).'
The sanctions also cover foreign intermediaries. For example, Bab Al Barsha Trading LLC in the UAE, which worked with Persistent Petrochem, has also been sanctioned.
Why this action matters
This move is part of what the US calls its 'maximum pressure' campaign on Iran. The strategy focuses on disrupting what Washington terms the "shadow fleet"—a complex network of ships, traders, and brokers helping Iran export oil and petrochemical products under the radar.
American officials argue that oil revenues help fund groups and activities that destabilise the Middle East.
'The ultimate goal of sanctions is not to punish, but to bring about a positive change in behaviour,' the US State Department said.
India's trade history with Iran
India has had longstanding trade relations with Iran, especially in oil. However, following previous rounds of US sanctions in 2019, India significantly reduced its imports from the country.
Despite this, business links have persisted, sometimes through intermediaries or indirect routes. The latest sanctions reflect Washington's intent to crack down not only on Iran but also on any entity enabling its oil trade—regardless of location.
The US Treasury's enforcement sweep wasn't limited to Indian companies. Firms based in Turkey, China, Indonesia, and the UAE were also named. Several of these have ties to India.
Cora Lines Inc., for instance, is a subsidiary of Teodor Shipping L.L.C., a UAE-based company controlled by an Indian national. It too has been sanctioned.
The Indian companies named have yet to release official responses. However, the US has left a path open. Firms wishing to challenge their designation can file petitions with the US Treasury's Office of Foreign Assets Control.
As per the State Department's guidance, sanctioned parties may be removed from the Specially Designated Nationals list if they can prove they no longer engage in restricted activities.
For now, the sanctions remain in place. The message from Washington is clear: any breach of Iran-related trade restrictions, direct or indirect, won't go unnoticed.