US bans 6 Indian companies for trading in Iranian petrochemical goods; But why?

These sanctions were announced by the US State Department on Wednesday. They have alleged that Indian companies have deliberately increased transaction activities for the purchase and marketing of Iranian petroleum products.

New Delhi: The United States of America (USA) has imposed strict sanctions on as many as 6 Indian firms for being involved in the business of Iranian petrochemical products. This action taken by the Trump administration can have a long term affect on the Indian companies.

US State Dept Announcement

These sanctions were announced by the US State Department on Wednesday. They have alleged that Indian companies have deliberately increased transaction activities for the purchase and marketing of Iranian petroleum products. The banned companies also include some of the country's main petrochemical traders. US is currently working with a policy of maximum pressure against Iran.

Banned Firms

Alchemical Solutions Pvt. Ltd - The biggest allegation by the US has been made on this company. This company has been accused of importing Iranian oil products worth more than US $ 84 million between January and December 2024.

Global Industrial Chemicals Ltd - This company was accused in July 2024 of purchasing methanol and Iranian petrochemical products worth more than US $ 51 million.

Jupiter Dye Chem Pvt. Ltd - This company has allegedly imported several Iranian products including toluene worth more than US $ 49 million. This allegation was also made against the company in 2024.

Ramaniklal S Gosalia & Co - This company is also accused of purchasing several Iranian petrochemicals including methanol and toluene for US $ 22 million.

Persistent Petrochem Pvt. Ltd. - This company has been alleged to have imported Iranian petrochemicals worth US$14 million between October and December 2024.

Kanchan Polymers - This company has been accused of purchasing Iranian polyethylene products worth more than $1.3 million.

Impact On Banned Companies

Companies banned by the Trump Government will no longer be able to do any kind of business with America. This will cause them losses in the international market. These companies are part of the multinational supply chain, so their credibility will also be questioned.

Banning companies is sure to cause financial losses. This increases the chances of foreign funding, partnership and fraud. Uncertainty may increase in the petrochemical sector, especially for those companies that have been doing business with Iran till now.

This may also create tension in India-US relations. India may face difficulty in maintaining a balance between America and Iran.