US Sanctions Six Indian Companies for Trading Iranian Oil and Petrochemicals

United States has imposed sanctions on six Indian companies for allegedly violating its sanctions on Iranian oil and petrochemical trade. The decision, announced by the U.S. Department of State on July 30, 2025, is part of a broader international effort targeting 20 entities across several countries.

The sanctioned Indian firms 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. All six are accused of engaging in significant commercial transactions involving Iranian petroleum products, which are restricted under U.S. sanctions policy aimed at curbing Iran’s revenue streams.

According to official U.S. data:

• Alchemical Solutions allegedly imported over $84 million worth of Iranian petrochemicals between January and December 2024.

• Global Industrial Chemicals is said to have purchased Iranian methanol and other products worth $51 million from July 2024 to January 2025.

• Jupiter Dye Chem reportedly imported toluene and other materials valued at $49 million.

• Ramniklal S Gosalia and Company allegedly acquired $22 million in petrochemicals, including methanol and toluene.

• Persistent Petrochem is accused of importing $14 million worth of methanol in just three months.

• Kanchan Polymers reportedly purchased around $1.3 million worth of Iranian polyethylene.

As a result of the sanctions, all U.S.-linked assets of these companies will be frozen, and American businesses or individuals are barred from any dealings with them. Additionally, these restrictions extend to any subsidiaries or affiliates owned 50% or more by the sanctioned companies. The sanctions also cover vessels and intermediaries used in facilitating these trades.

This move is part of the U.S.'s "maximum pressure" campaign to isolate Iran economically and disrupt funding to what it calls “destabilizing activities” in the Middle East, including support for terrorist organizations. The U.S. government believes Iran channels oil revenues to finance such operations, and has simultaneously taken action against entities in China, Turkey, the UAE, and Indonesia.

While India historically imported oil from Iran, those imports have drastically reduced since 2019, following an earlier wave of U.S. sanctions. This latest development complicates the diplomatic relationship between Washington and New Delhi, especially as both nations navigate complex trade, defense, and strategic ties.

The sanctioned Indian companies have the option to appeal to the U.S. Treasury’s Office of Foreign Assets Control (OFAC) to be removed from the Specially Designated Nationals (SDN) list. U.S. officials emphasize that the sanctions are not intended as punishment but as a means to change behavior and deter future violations.

This latest enforcement action underscores the difficult position for Indian businesses caught between international energy needs and U.S. sanctions laws, and reflects Washington’s determination to clamp down on any global trade that helps Iran bypass its economic restrictions.