The US has banned an Indian petrochemical company because of its trade with Iran. This is the first time that the US has taken action against an Indian company due to sanctions imposed on Iran. The US Treasury Department issued a statement on September 30. In Mumbai, the company Tibalaji Petrochemical Pvt Ltd (Tibalaji Petrochemical Pvt Ltd) bought petroleum products worth millions of dollars from Iran and sold them to China and other countries.
America has banned 7 more companies along with an Indian company. These include companies from the UAE and Hong Kong. According to the US Treasury Department, Tibalaji Petrochemical Pvt Ltd purchased products worth millions of dollars from Iranian broker company Trillions and exported them to China. The Treasury Department’s Office of Foreign Asset Control (OFAC) imposed these restrictions on companies.
Preparing to ban Chinese companies
Trillian is an intermediary company in Iran that works with companies from other countries to sell petroleum products. The US State Department is preparing to impose sanctions on two Chinese companies, Zhonghu Storage and Transportation Co Ltd and WS Shipping Co Ltd, the Treasury Department said. These companies are also associated with Iran’s petrochemical business.
The US Treasury Department has also accused Iran-based petrochemical brokers Iran Chemical Industries Investment Company and Middle East Kimia Pars Company of buying and shipping millions of dollars worth of petrochemical and petroleum products into India.
US sanctions on Iran
After withdrawing from the Iran nuclear deal in 2018, the US announced a number of sanctions. The US has asked the countries that buy oil from Iran to stop importing oil from Iran. In the year 2018-19, India imported crude oil worth more than 9 lakh 79 thousand crore rupees from Iran. In May 2019, India stopped importing crude oil from Iran following US sanctions.
Meanwhile, India also enjoys good relations with Iran. India has invested billions of rupees in Iran’s Chabahar port. Through this port, it will be easy for India to trade with Afghanistan and Central Asian countries.
