New Delhi: In a significant move that could strain Indo-US trade relations, the United States has announced sanctions against six Indian companies for allegedly participating in the import and trade of Iranian petroleum and petrochemical products. The U.S. State Department and the Office of Foreign Assets Control (OFAC) of the Treasury Department jointly issued the sanctions, accusing the Indian firms of conducting transactions amounting to approximately $220 million that indirectly supported Iran’s oil and chemical export infrastructure in violation of U.S. sanctions.
The sanctioned entities Alchemical Solutions Pvt Ltd, Global Industrial Chemicals Ltd, Jupiter Dye Chem Pvt Ltd, Ramniklal S Gosalia & Co, Persistent Petrochem Pvt Ltd, and Kanchan Polymers have been placed on the Treasury’s Specially Designated Nationals and Blocked Persons List (SDN List). As a result, all assets of these companies under U.S. jurisdiction have been frozen, and American citizens or businesses are prohibited from engaging in any transactions with them.
The U.S. government alleges that these companies facilitated the purchase, shipment, and resale of Iranian-origin methanol, polyethylene, toluene, and other petrochemical derivatives. Alchemical Solutions alone is reported to have imported over $84 million worth of Iranian petrochemical goods in 2024, while others were involved in deals ranging from $1.3 million to $51 million. These operations, according to U.S. authorities, were masked through complex trading routes involving third-party countries to obscure the Iranian origin of the products.
This round of sanctions is part of Washington’s broader “maximum pressure” campaign against Iran, aimed at cutting off revenue streams that allegedly fund Iran’s controversial nuclear activities, ballistic missile program, and proxy groups across the Middle East. The U.S. administration maintains that such enforcement actions are necessary to deter entities across the globe from aiding Iran’s defiance of international norms.
While the Indian government has not yet issued an official response to the sanctions, diplomatic observers note that the move could trigger friction at a time when trade talks and tariff negotiations between India and the U.S. are already delicate. Earlier this week, the U.S. also announced a 25% tariff on several categories of Indian exports, citing imbalanced trade practices adding further tension to bilateral economic ties.
Analysts suggest that these sanctions will have a significant impact on the Indian petrochemical sector, particularly for medium-sized firms that depend heavily on access to affordable raw materials and international financial systems. The sanctioned companies now face not only financial isolation but also reputational damage in global trade circles.
Legal experts point out that entities listed under U.S. sanctions do have the option to challenge the designation by submitting evidence and petitions for removal. However, the process is often long and uncertain, and in the meantime, their ability to operate internationally is severely curtailed.
This latest action is a stark reminder of the extraterritorial reach of U.S. sanctions policy and the vulnerabilities of companies operating in the grey zones of global commerce. For India, it presents a renewed challenge in balancing its energy security needs with geopolitical alignments in an increasingly multipolar world.