US President Donald Trump.
The US has taken another major step after US President Donald Trump announced 25% tariff and fine on India. Now the US has directly banned six Indian companies on charges of buying oil and petrochemical products from Iran. This action has been taken against 20 global companies that are accused of violating US sanctions. This decision is being considered as part of the strategy to create economic pressure on Iran.
Companies were doing business from Iran
The US State Department issued an official statement on Wednesday, saying that these Indian companies made ‘important transactions’ related to the purchase and marketing of Iranian petroleum products, which is a violation of US sanctions. The statement said, “Iranian rule uses this revenue to support foreign terrorist organizations and torture its own citizens. The US is now taking strict action to stop this money flow.”
Which Indian companies were banned?
These six Indian companies have been declared a blockded entity under the US Executive Order 13846. This means that now the property of these companies in America can be confiscated and any American institution will not be allowed to transact.
- Kanchan Polymers
- Alchemical Solutions Private Limited (Alchemical Solutions Pvt. Ltd.)
- Ramanikalal S. Gosalia & Company
- Jupiter Die Cam Private Limited (Jupiter Dye Chem Pvt. Ltd.)
- Global Industrial Chemicals Ltd.
- Persistent Petrochem Pvt. Ltd.)
America’s strictness continues on Iran
Significantly, the US has been continuously implementing strict economic sanctions on Iran since the US has withdrawn from the 2015 nuclear deal. Under the Executive Order 13846, the US has imposed restrictions on Iran’s energy and financial sectors in several stages. This new step is also an extension of the same policy through which America wants to limit Iran’s oil revenue.
Stress may increase in Indo-US relations
Just a day before the announcement of this ban, Trump had announced 25% tariff on India and a penalty on military and energy purchase from Russia. In such a situation, these decisions taken within two days are considered to be a sign of tension in the trade relations of Indo-US. So far there has been no official response from the Government of India regarding these restrictions.