US slaps sanctions on 6 Indian companies over imports from Iran

The United States on Wednesday imposed sanctions on six Indian companies, including Alchemical Solutions, Global Industrial Chemicals, Jupiter Dye Chem, Ramniklal S Gosalia & Co, Persistent Petrochem, and Kanchan Polymers, for what it alleged “significant transactions" involving Iranian petroleum and petrochemical products.

The sanctions announced by the US Department of State on 30 July considers Alchemical Solutions as the top violator of US laws with alleged imports of $84 million worth of petrochemicals from Iran in 2024.

Global Industrial Chemicals, the next in the list, is accused of buying menthol and other products worth over $51 million from Iran between July 2024 and January 2025. Jupiter Dye Chem has allegedly imported toluene worth over $49 million during the period. Ramniklal S Gosalia & Co is accused of purchasing petrochemicals, including methanol and toluene worth over $22 million.

Persistent Petrochem allegedly imported methanol worth around $14 million from Iran between October and December 2024 while Kanchan Polymers has allegedly bought polyesthylene worth over $1.3 million from Iran.

Accordingly, all US-based assets of these companies stands frozen, and all American entities have been barred from doing business with these companies. 

Further, as per US laws, all other entities that are owned 50 per cent or more by these companies will also be subject to US sanctions.

While India has substantially reduced oil imports from Iran in recent years, the country remains a traditional source for oil imports for Indian importers.

These Indian companies will now have to file petitions with the US Treasury's Office of Foreign Assets Control (OFAC) for remedil action. 

The Trump adminisdtration has imposed such sanctions on 16 other companies worldwide as part of a larger global sanctions action.