'Not to punish...': US sanctions 6 Indian companies over oil trade with Iran hours after 25% tariff imposition; Tehran calls it 'economic imperialism'

The United States has imposed sanctions on at least half a dozen Indian companies for allegedly trading with Iranian petroleum and petrochemicals. The US Department of State on Wednesday (July 30) announced sanctions against multiple firms - including several from India. Those from India include Kanchan Polymers, Alchemical Solutions Pvt Ltd, Ramniklal S Gosalia and Company, Jupiter Dye Chem Pvt Ltd, Global Industrial Chemicals Ltd, and Persistent Petrochem Pvt Ltd. The US Department of State alleged that the Indian firms knowingly engaged in “significant transactions” for the purchase and marketing of Iranian petroleum products, violating American sanctions on Iran.

In response, Iran said that the United States is weaponising the economy and using sanctions as tool to “dictate its will on independent nations.” In a post on X by Iranian Embassy in India, it called the US' action as “coercive,” “discriminatory” and “modern form of economic imperialism”, adding that it violates the principles of international law. “Resisting such policies is a stand for a more powerful emerging non Western-led multilateral world order and a stronger Global South,” it added.

Under the sanctions, all assets of these companies in the United States or controlled by US persons are now frozen. American individuals and companies are prohibited from conducting business with the sanctioned entities. The action also blocks any entity that is 50% or more owned by the sanctioned companies. The sanctions also targeted companies in Turkey, the UAE, China, and Indonesia.

Indian companies and allegations they face?

The sanctioned Indian companies include some of the country’s major petrochemical traders. The sanctioned companies can petition for removal from the US Treasury’s Specially Designated Nationals list. The US government says the “ultimate goal of sanctions is not to punish, but to bring about a positive change in behaviour. Companies wishing to contest their designation can submit petitions to the Treasury Department’s Office of Foreign Assets Control, according to a fact sheet shared by the US Department of State.

• Alchemical Solutions Private Limited faces the largest allegations, accused of importing Iranian petrochemical products worth over USD 84 million between January and December 2024.
• Global Industrial Chemicals Limited is alleged to have purchased Iranian petrochemicals, including methanol, valued at over $51 million between July 2024 and January 2025.
• Jupiter Dye Chem Private Limited reportedly imported Iranian products, including toluene worth over $49 million, during the same period.
• Ramniklal S Gosalia and Company is accused of purchasing Iranian petrochemicals worth over $22 million, including methanol and toluene.
• Persistent Petrochem Private Limited allegedly imported approximately $14 million worth of Iranian petrochemicals, particularly methanol, between October and December 2024.
• Kanchan Polymers allegedly imported and purchased over $1.3M worth of Iranian-origin petrochemical products, including polyethylene, from Tanasis trading.

US sanctions and tariffs on India

The sanctions come as the US continues its “maximum pressure” campaign against Iran, targeting what it calls the country’s “shadow fleet” of vessels and intermediary companies that help transport Iranian oil and petrochemicals globally. US officials have said that Iran uses revenue from oil and petrochemical exports to fund what Washington describes as “destabilising activities” in the West Asia and support for terrorist groups. It also comes after the Donald Trump administration announced 25 percent tariffs “plus a penalty” for India. Trump also announced an ‘additional penalty’ on India for it for its oil and arms purchases from Russia. While acknowledging India as a “friend,” Trump criticised the country for maintaining excessively high tariffs and what he described as “obnoxious” non-monetary trade barriers, which he claimed have hindered US–India trade for years. He also condemned India’s continued purchase of military equipment and energy from Russia, calling it inappropriate amid ongoing global efforts to halt Russia’s war in Ukraine. In response, India’s government stated it is reviewing the decision and reaffirmed its commitment to negotiating a fair, balanced trade agreement that protects domestic interests. Meanwhile, India has historically maintained trade relationships with Iran, though it has reduced Iranian oil imports significantly since 2019 following previous US sanctions.