In a move to build maximum pressure on India, the United States has placed sanctions on six companies. This move hits India which is suffering from Tariffs.
Indian Companies Sanctioned in Major US Action
These companies are being accused of doing business with Iran by buying and selling oil and chemicals, which goes against US rules. The total value of these business deals is said to be over $220 million.
This action is part of a larger crackdown by the US government on companies across the world who are helping Iran sell its oil and petrochemical products. Along with the Indian firms, companies in China, Turkey, the UAE, and Indonesia were also targeted.
The US claims that the money Iran earns from these trades is being used to support activities and groups in the Middle East that they call “destabilizing.” That includes funding for groups the US believes are involved in violence or terrorism.
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What the US Says the Indian Companies Did
The US State Department has released a list of six Indian companies they believe were involved in trading with Iran. According to American officials, these firms made big purchases of oil-based products like methanol, toluene, and polyethylene — all of which are used in industries like plastics, paints, and cleaning agents.
Here’s what the US has accused each company of doing:
- Alchemical Solutions Private Limited: This company is said to have imported more than $84 million worth of Iranian petrochemical products during 2024. That’s the largest among the six.
- Global Industrial Chemicals Limited: Officials claim this company bought over $51 million worth of Iranian chemicals between July 2024 and January 2025.
- Jupiter Dye Chem Private Limited: They reportedly brought in $49 million in Iranian products during the same period, including a chemical called toluene.
- Ramniklal S Gosalia and Company: This firm is said to have purchased $22 million worth of Iranian chemicals.
- Persistent Petrochem Private Limited: The US believes this company imported around $14 million in methanol between October and December 2024.
- Kanchan Polymers: They are accused of buying $1.3 million in Iranian-made polyethylene.
The US also added one more company to the list — Tanais Way General Trading LLC, based outside India, which is accused of exporting Iranian products to India. This company is linked to Kanchan Polymers.
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What the Maximum Pressure Mean
The US says this is part of its “maximum pressure” strategy to stop Iran from selling oil and chemicals. They believe that the revenue from such trade is being used by Iran to fund armed groups and cause problems in the Middle East.
So what do these sanctions actually do? Basically, they cut off these companies from doing business with anyone in the United States. If these companies have any money, property, or deals in the US, those will be frozen. US citizens and companies are not allowed to work with or support the sanctioned Indian firms in any way.
Even more, if another company is owned 50% or more by one of the sanctioned companies, that company will also be automatically blacklisted. This can have a big effect on how these Indian businesses operate globally.
It is important to note that India used to import a lot of oil from Iran, but after earlier US sanctions in 2019, those imports dropped. However, the recent sanctions show that some trade still continued behind the scenes.
According to US law, these companies can appeal to be removed from the sanctions list. To do this, they must submit a formal request to the Office of Foreign Assets Control (OFAC) under the US Treasury Department.
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This move also comes shortly after former President Donald Trump announced a 25% tariff on Indian imports, adding pressure on India’s trade situation. Trump had also mentioned extra penalties for Indian firms that do business with Russia. These new tariffs are set to begin on August 1, 2025.
This news has caught the attention of global markets and officials alike. The affected Indian firms may face difficulty not just in the US but with other international partners who may now be cautious about working with them. The situation continues to develop as companies review their next steps and options.