US sanctions four Indian firms: What are the charges, and what happens now?

US sanctions four Indian firms for allegedly transporting Iranian oil, citing a covert network fueling Tehran's destabilising activities

In a fresh wave of sanctions under its ‘maximum pressure’ campaign against Iran, the US has imposed penalties on four India-based companies for allegedly facilitating the sale and transportation of Iranian petroleum-related products. 

 

The move, announced by the US Department of the Treasury on Monday, February 24, targets oil brokers, tanker operators, and managers across India, the United Arab Emirates (UAE), Hong Kong, and China, reported The Indian Express.

 

Who has been sanctioned? 

According to information from the US Office of Foreign Assets Control and the Department of State, the four sanctioned Indian firms include: 

• Flux Maritime LLP (Navi Mumbai)

 

• BSM Marine LLP (National Capital Region)

• Austinship Management Pvt Ltd (National Capital Region)

 

• Cosmos Lines Inc. (Thanjavur)

 

Three of these companies have been sanctioned for their role as commercial or technical managers of vessels allegedly involved in transporting Iranian petroleum. The fourth, Cosmos Lines Inc., has been targeted for directly facilitating the transport of Iranian petroleum products.

 

 

Why the fresh sanctions? 

The US alleges that Iran relies on a covert network of vessels, brokers, and shippers to continue its oil trade despite existing sanctions. Treasury Secretary Scott Bessent reinforced this stance, stating: “Iran continues to rely on a shadowy network of vessels, shippers, and brokers to facilitate its oil sales and fund its destabilising activities. The US will use all our available tools to target all aspects of Iran’s oil supply chain, and anyone who deals in Iranian oil exposes themselves to significant sanctions risk.”

 

The US claims Iran employs ‘shadow fleets’—sanctioned tankers that conduct ship-to-ship transfers outside jurisdictional port limits, disguising the oil’s Iranian origin before selling it to foreign buyers. 

 

Washington also argues that revenues from these transactions are funneled into ‘regionally destabilising activities’ by Iran’s military and its proxy groups.

 

What are sanctions? 

Sanctions are economic restrictions imposed by a country or international body to limit or completely cut off trade and financial relations with a target entity. These can take multiple forms, such as:

 

• Bans on imports or exports

• Asset freezes

 

• Prohibition from using international banking systems

 

• Restrictions on currency transactions

 

The Council on Foreign Relations explains that sanctions may be comprehensive—banning all commercial activity with a country (eg, the US embargo on Cuba)—or targeted, restricting transactions involving specific businesses, groups, or individuals.

 

The US has a history of using sanctions against multiple nations, including Iran, North Korea, China, and, most notably, Russia, which became the most sanctioned country following the Ukraine invasion.

 

Beyond the US, sanctions can also be imposed by international bodies like the United Nations (UN)—if approved by the Security Council — or regional entities like the European Union.

 

Do sanctions work? 

Sanctions are often used as a punitive or pressure tactic, with the expectation that economic hardships will force a country to alter its behaviour. However, their effectiveness is widely debated. Critics argue that targets frequently find ways to circumvent restrictions, and sanctions can also hurt the enforcer. For instance: 

- Despite heavy sanctions, Russia’s economy remains resilient, as countries like India and China continue trading with Moscow. 

- The UN lacks direct enforcement mechanisms, relying on member states to implement restrictions, often with mixed results. 

- Import bans impact the sanctioning country’s industries that rely on goods from the targeted nation.