Washington: The United States has imposed sanctions on six Indian companies for allegedly purchasing and marketing Iranian-origin petroleum and petrochemical products, as part of a crackdown on global trade networks that support Tehran’s energy sector. The move comes under Executive Order 13846, which reimposed sanctions after the US exited the 2015 nuclear agreement with Iran.
Announcing the action on Wednesday, July 30, the US Department of State said the sanctioned entities were knowingly involved in "significant transactions" with Iran's petrochemical industry, a sector Washington accuses of generating revenue to fund terrorism and internal repression.
According to reports, a total of 20 entities and 10 vessels have been designated in this round of sanctions. The six Indian companies involved span petrochemical trading, industrial chemicals, and polymer imports.
The move comes just after US President Donald Trump announced 25% tariffs "plus a penalty" for India on Wednesday. Here's what Trump said:
These are the six Indian companies named:
1. Alchemical Solutions Pvt Ltd: This Mumbai-based firm is facing the largest allegation in the group. According to the US State Department, Alchemical Solutions imported Iranian-origin petrochemical products worth over $84 million between January and December 2024. Specific details about the type of products have not been disclosed, but the financial scale of the transactions places the company at the top of the list.
2. Global Industrial Chemicals Ltd: Global Industrial Chemicals, also registered in Mumbai, is accused of importing and purchasing methanol and other Iranian-origin products worth more than $51 million. The imports reportedly occurred over a six-month window, from July 2024 to January 2025, reflecting what the US sees as deliberate and sustained sanctions violations.
3. Jupiter Dye Chem Pvt Ltd: Another high-value offender, Jupiter Dye Chem allegedly imported Iranian petrochemicals, including toluene, valued at over $49 million between January 2024 and January 2025. The company is described as a major player in India’s petrochemical trading network.
4. Ramniklal S Gosalia and Company: Ramniklal S Gosalia and Company has been named for allegedly importing over $22 million worth of Iranian methanol and toluene during the same 12-month period. While smaller in scale, the US maintains that the transactions were “significant” and part of an intentional business arrangement with Iranian-linked suppliers.
5. Persistent Petrochem Pvt Ltd: Persistent Petrochem is alleged to have imported approximately $14 million worth of Iranian-origin petrochemicals between October and December 2024. Notably, one of the suppliers identified by the US is Bab Al Barsha, a commodities trading firm based in the UAE, which is believed to have facilitated Iran-linked shipments.
6. Kanchan Polymers: The smallest of the six in financial terms, Kanchan Polymers is said to have imported over $1.3 million worth of polyethylene from Tanais Trading, which the US identifies as connected to Iran. Despite the relatively modest figure, the transaction falls within the parameters of Executive Order 13846 and has triggered a full sanctions designation.
All six Indian entities have been designated under section 3(a)(iii) of the Executive Order for knowingly engaging in significant transactions involving Iranian petrochemical products. The US has reiterated that the broader goal of the sanctions is to pressure the Iranian regime into ceasing destabilising activities in the Middle East.
What These Sanctions Actually Mean for the Firms Involved?
For the six Indian firms now under the US sanctions regime, the fallout is both financial and reputational. Their assets in the United States, or held by American-controlled entities, are now frozen. In addition, all US citizens and companies are prohibited from doing business with them.
The restrictions even extend to any entity where the sanctioned firms hold a 50 percent or higher 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 US persons are blocked,” the State Department said. These restrictions cut off access to global banking systems and complicate trade relationships beyond the US, especially for firms that rely on international credit lines or dollar-based transactions.
Part of America's 'Maximum Pressure' Campaign
This round of sanctions is part of what the US calls its “maximum pressure” campaign against Iran, targeting not just Tehran’s oil revenues but the global networks that help move those funds. The sanctions send a strong signal to intermediaries and foreign partners that doing business with Iran’s energy sector, even indirectly, comes with a cost.
This includes firms outside Iran, like UAE-based Bab Al Barsha and Cora Lines Inc, both of which are linked to Indian interests and have also been designated. The State Department added, “The ultimate goal of sanctions is not to punish, but to bring about a positive change in behaviour.” Indian firms on the list will now have to prove to the US Treasury’s OFAC that they are no longer involved in restricted activities, if they want any chance of being delisted.
(With inputs from TOI and ANI)
