6 Indian Companies Sanctioned By US Over Iran Petroleum Purchases

Six Indian companies are under the radar of the US Department of State. Their fault? They "engage in Iranian petroleum, petroleum products, or petrochemical trade". This reportedly violates American sanctions under Executive Order 13846. The US claims that the Iranian regime uses revenue to fuel conflict in the Middle East, fund terrorism, and oppress its people.

In a statement, the US Department of State spokesperson said, "The Iranian regime continues to fuel conflict in the Middle East to fund its destabilising activities.  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."

The US Department of State Wednesday announced sanctions on 20 entities, including six from India, for trading with Iran.

6 Indian Companies Sanctioned By US

Alchemical Solutions Private Limited (Alchemical Solutions) faces the largest allegations, accused of importing and purchasing Iranian-origin petrochemical products worth over $84 million from multiple companies between January and December 2024.

Global Industrial Chemicals Limited (Global Industrial) is second on the list, accused of importing and purchasing Iranian products, including methanol, worth over $51 million between July 2024 and January 2025.

Jupiter Dye Chem Private Limited (Jupiter Dye Chem), an India-based petrochemical trading company, is accused of importing and purchasing Iranian-origin petrochemical products, including toluene, valued at over $49 million between January 2024 and January 2025

Ramniklal S Gosalia And Company (Ramniklal), another petrochemical company, allegedly imported and purchased Iranian products worth over $22 million, including methanol and toluene, between January 2024 and January 2025.

Persistent Petrochem Private Limited has imported approximately $14 million worth of shipments containing Iranian-origin petrochemicals, such as methanol, from multiple companies, including from Bab Al Barsha, a UAE-based commodities trading company, with shipping dates between October 2024 and December 2024, said the US.

Kanchan Polymers is said to have imported and purchased over $1.3 million worth of Iranian-origin petrochemical products, including polyethylene, from Tanais Trading.

All these Indian firms have been designated under section 3(a)(iii) of Executive Order 13846 for "knowingly engaging" in a significant transaction for the purchase, acquisition, sale, transport, or marketing of petrochemical products from Iran.

What Happens Now: Sanctions Implications

Under the sanctions, all property and interests in property of these companies in the US or under the control of US persons are blocked. The sanction also blocks an entity or company which is 50 per cent or more owned by a person or company that is already blocked.

"All transactions by US persons or within (or transiting) the United States that involve any property or interests in property of designated or otherwise blocked persons are prohibited unless authorised by a general or specific license issued by OFAC or exempt.  These prohibitions include the making of any contribution or provision of funds, goods, or services by, to, or for the benefit of any blocked person and the receipt of any contribution or provision of funds, goods, or services from any such person," the Department said.

The US Department of State clarified that the goal of sanctions is "not to punish, but to bring about a positive change in behavior."