US sanctions 6 Indian firms for trading oil with Iran
What's the story
The United States has imposed sanctions on 20 global entities, including six from India, for trading with Iran. The US State Department announced the sanctions on Wednesday, accusing these firms of engaging in "significant transactions" involving Iranian petroleum products. The Indian companies include Alchemical Solutions Private Limited, Global Industrial Chemicals Limited, Jupiter Dye Chem Private Limited, Ramniklal S Gosalia and Company, Persistent Petrochem Private Limited, and Kanchan Polymers.
Statement
What the State Department said
In a statement, the State Department said, "These companies have collectively imported tens of millions of dollars' worth of Iranian-origin petrochemicals," adding that such transactions "generate billions of dollars in illicit funds for Iran's destabilizing activities." The move would "stem the flow of revenue that the (Iranian) regime uses to support terrorism abroad, as well as to oppress its own people." It claimed that Iran "continues to fuel conflict in the Middle East to fund its destabilizing activities."
Accusations detailed
Alchemical Solutions and Global Industrial Chemicals
Of the six Indian companies, Alchemical Solutions faces the largest allegations. It is accused of importing over $84 million worth of Iranian petrochemicals in 2024. Global Industrial Chemicals allegedly imported over $51 million worth of Iranian methanol during the same period. Jupiter Dye Chem is accused of importing over $49 million worth of toluene from Iran between January 2024 and January 2025. Ramniklal S Gosalia And Company allegedly imported Iranian products worth over $22 million during this period.
Asset freeze
Persistent Petrochem and Kanchan Polymers
The sanctions also extend to Persistent Petrochem, which imported about $14 million worth of Iranian methanol between October and December 2024. Kanchan Polymers is accused of importing over $1.3 million worth of polyethylene from Iran during this period. The sanctions have been imposed under Executive Order 13846 for "knowingly engaging" in a significant transaction for the purchase, acquisition, sale, transportation, or marketing of Iranian petrochemicals. The sanctions also apply to foreign intermediaries such as UAE-based Bab Al Barsha Trading LLC.
Campaign continuation
Sanctions implications
The sanctions freeze all US-based assets of these firms or those controlled by US persons, barring American entities from business dealings with them. "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 authorized by a general or specific license issued by OFAC or exempt," the department said.
Appeal process
Organizations can challenge their designation
Organizations seeking to challenge their designation may submit appeals to the Treasury Department's Office of Foreign Assets Control, according to official documentation from the US State Department. The US administration stated that sanctions aim to "bring about a positive change in behavior" and not to punish. The sanctions were announced after US President Donald Trump imposed a 25% tariff on India, effective from August 1, accompanied by an unspecified penalty rate.