[Four Indian companies among those sanctioned by US over alleged involvement in Iran’s oil trade | Business News]
Introduction
The United States has taken a significant step to tighten its grip on the international oil trade by slapping sanctions on four Indian companies over their alleged involvement in the trade and transportation of Iranian crude oil and petroleum products. This move is part of the Trump administration’s "maximum pressure campaign" against Iran, aimed at stemming the flow of revenue that the regime uses to fund its destabilizing activities.
Four Indian companies among those sanctioned by US over alleged involvement in Iran’s oil trade
According to the United States Department of the Treasury’s Office of Foreign Assets Control (OFAC) and the US Department of State, the four Indian companies sanctioned are Navi Mumbai-based Flux Maritime LLP, National Capital Region (NCR)-based BSM Marine LLP and Austinship Management Pvt Ltd, and Thanjavur-based Cosmos Lines Inc. These companies have been accused of being involved in the transportation of Iranian oil and petroleum products, a trade that is heavily restricted due to US sanctions.
A network of illicit shipping facilitators
The US has identified a network of illegitimate shipping facilitators in multiple jurisdictions, including India, who transport Iranian oil for sale to buyers in Asia. These facilitators use a complex web of shell companies, false documentation, and other tactics to conceal the true nature of their activities. The US has accused these companies of helping Iran to circumvent international sanctions and generate hundreds of millions of dollars in revenue.
A repeat offender: India’s energy trade with Iran
This is not the first time that Indian companies have been sanctioned for their involvement in energy trade with Iran. In October 2020, India-based Gabbaro Ship Services was sanctioned for alleged involvement in the transportation of Iranian oil. In August and September 2020, three India-registered shipping firms were also sanctioned for their alleged involvement in transporting liquefied natural gas (LNG) from Russia’s Arctic LNG 2 project, which is under American sanctions.
A large number of Indian vessels in the shadow fleet
A significant number of Indian vessels are part of the shadow fleet, a network of vessels that specializes in transporting oil and petroleum products from sanctioned countries such as Iran, Russia, and Venezuela. The shadow fleet is characterized by opaque ownership structures, substandard insurance and certifications, and a lack of transparency. The US has been cracking down on this shadow fleet, seeking to disrupt Iran’s ability to generate revenue from its oil exports.
Conclusion
The US sanctions on four Indian companies are a significant blow to India’s energy trade with Iran, which has been a contentious issue between the two countries. The Indian government has been trying to reduce its dependence on Iranian oil, but the country’s imports from Iran remain significant. The US sanctions are a warning to other countries to be cautious in their dealings with Iran, particularly in the energy sector. The Indian companies sanctioned by the US have been accused of being part of a network of illicit shipping facilitators that help Iran to circumvent international sanctions. As the US continues to tighten its grip on the global oil trade, it remains to be seen how India will adapt to these changes and what implications they will have for the country’s energy trade.
