US sanctions 6 Indian firms for trading in Iranian petrochemical goods

The sanctions freeze US-based assets of the six Indian companies and prohibit US entities from any dealings, affecting global petrochemical trade links

The United States has sanctioned six Indian companies for allegedly trading in Iranian petroleum and petrochemical products.

The move, announced by the US Department of State on Wednesday, is part of a broader enforcement action against 20 entities worldwide. It underscores Washington’s continued crackdown on violations of its sanctions regime against Iran.

 

Who’s been hit and why

According to the US, the Indian firms conducted transactions worth millions of dollars in Iranian-origin methanol, polyethylene, toluene, and other petrochemical derivatives. 

Among those named, Alchemical Solutions Pvt Ltd is accused of importing over $84 million in Iranian petrochemicals between January and December 2024. 

 

The firms now face a freeze on all US-based assets and a ban on any dealings with US citizens or companies. The sanctions also extend to any subsidiaries in which these firms hold 50 per cent or more ownership. 

A US State Department statement clarified that all such transactions “by US persons or within [or transiting] the United States” involving blocked entities are prohibited unless explicitly authorised.   

 

Companies and alleged trade volumes

1. Alchemical Solutions Pvt Ltd: $84 million (Jan–Dec 2024)

2. Global Industrial Chemicals Ltd: $51 million (Jul 2024–Jan 2025)

3. Jupiter Dye Chem Pvt Ltd: $49 million (Jul 2024–Jan 2025)

4. Ramniklal S Gosalia & Co: $22 million

5. Persistent Petrochem Pvt Ltd: $14 million (Oct–Dec 2024)

6. Kanchan Polymers: $1.3 million

 

Why the sanction matters

* The sanctions highlight Washington’s growing scrutiny of indirect trade flows that help Iran bypass economic restrictions tied to its nuclear and regional activities.

* For India, the move could impact its chemical supply chains and complicate global trade relationships involving dual-use chemicals and intermediaries.

* The companies now face operational disruption, especially if they depend on US-linked banking and shipping services.

* The development reinforces the US intent to globally enforce its unilateral sanctions policies, irrespective of local regulations or bilateral ties.   

 

Backstory: Sanctions on Iran

The United States reimposed sanctions on Iranian petroleum exports after exiting the 2015 nuclear deal (Joint Comprehensive Plan of Action) in 2018. Since then, Washington has targeted entities worldwide involved in trading, financing, or transporting Iranian oil and petrochemical products. 

While India stopped official crude imports from Iran post-2019, small-scale indirect trade via intermediaries has remained a blind spot. This is not the first time Indian firms have been penalised, but the current action includes a wider range of petrochemical goods and entities. 

 

Companies can seek delisting

The sanctioned firms now have the option to petition for removal from the US Treasury’s Specially Designated Nationals (SDN) list. A statement by the US State Department said, “The ultimate goal of sanctions is not to punish, but to bring about a positive change in behaviour.” 

Petitions can be submitted to the Office of Foreign Assets Control (OFAC) under the US Treasury Department. 

Besides India, the US also imposed sanctions on companies based in Turkey, the United Arab Emirates, China, and Indonesia.