Indian company banned by US for ‘dealing in Iranian petro products’

The US Treasury Department alleged that Mumbai-based Tibalaji Petrochem Pvt Ltd "purchased millions of dollars worth" petrochemical products from Iran for "onward shipment to China"

The company was one of eight hit in the latest round of sanctions. The others are located in the UAE, Hong Kong and China | Representative photo: iStock

In what is likely the first action against an Indian company for allegedly dealing in Iranian petroleum products, the US Treasury Department has imposed sanctions on Mumbai-based Tibalaji Petrochem Private Limited.

The Department on Thursday said that the company “purchased millions of dollars worth” petrochemical products, for “onward shipment to China”.

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The company was one of eight that were hit in the latest round of sanctions. The others are located in the United Arab Emirates (UAE), Hong Kong and China, an agency report said.

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Move after Jaishankar’s US visit

The sanctions came shortly after India’s External Affairs Minister S Jaishankar wrapped up his visit to Washington where he met several top officials, including Secretaries Antony Blinken of State, Lloyd Austin of Defence and Gail Raimondo of Commerce, and National Security Adviser Jake Sullivan.

When asked by a reporter at a briefing if the Iran sanctions came up during Jaishankar’s meeting with Blinken, State Department Deputy Spokesperson Dev Patel said they had nothing beyond what they said at their news conference.

The alleged deals made by Tibalaji, which describes itself on its website as a ‘growing petrochemical trading company’, do not appear to be for importing Iranian material to India, but rather for China.

Most of US sanctions were lifted after Iran reached an agreement with the five permanent members of the UN Security Council and Germany in 2015 to curtail its nuclear programme capable of weaponising it. But they were reimposed after former US President Donald Trump withdrew from the deal and Tehran restarted its nuclear weapons-capable programme.

What the sanctions mean?

The Treasury Department said that under the sanctions, all the properties and interests in the US of the eight companies or those in which they have at least 50 per cent interest “must be blocked” and reported to its Office of Foreign Assets Control (OFAC).

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It added that Tibalaji bought “petrochemical products, including methanol and base oil, for onward shipment to China” through deals brokered by Triliance Petrochemical Co Ltd Network that had been sanctioned earlier.

Triliance is based in Hong Kong with branches in Iran, China and the UAE.

(With Agency inputs)

 

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