US sanctions Indian company for energy dealings with Iran
What's the story
The United States has sanctioned an Indian company for acquiring Iranian petroleum and petrochemicals.
The Mumbai-based Tibalaji Petrochem Private Limited is one of the companies sanctioned by the US Department of the Treasury in the recent move against Iranian brokers and multiple firms outside the country.
The move comes barely a day after External Affairs Minister (EAM) S Jaishankar concluded his US tour.
Context
Why does this story matter?
The US claims that Iran's petroleum and petrochemical sectors are subject to sanctions as a result of the nation's continuous nuclear program progress in violation of the Joint Comprehensive Plan of Action (JCPOA).
The Treasury Department has warned that these actions will continue to restrict Iran's oil exports, therefore any firm supporting these sales should cease right now to prevent US sanctions.
Details
Tibalaji Petrochem buys petrochemical for export to China
According to IANS report, the Treasury Department stated that Tibalaji had bought millions of dollars worth of petrochemical items for "onward shipment to China."
It was one of eight targeted companies in the most recent wave of penalties.
The others are in the United Arab Emirates, Hong Kong, and China, according to the news agency.
EAM
Sanctions come soon after EAM Jaishankar concludes his US visit
The sanctions were announced just after EAM Jaishankar concluded his US trip, during which he met several prominent figures, including US Secretaries.
At a briefing, a reporter questioned whether the US Secretary of State and Jaishankar discussed the Iran sanctions. The spokesperson, Dev Patel, said that they had no more information beyond what they had stated at their press conference.
Specifications
What would the sanction mean?
The Treasury Department stated that the properties and interests of these eight companies, including Tibalaji, in the US "must be blocked" and reported to the Office of Foreign Assets Control (OFAC).
This also applies to any Americans who have responsibility over such businesses' assets, as well as anyone who engages in specific transactions with them.
Reason
Why did US sanction Iran's oil deals?
In 2015, the US lifted the majority of its sanctions against Iran after the country signed a deal with the five permanent members of the UN Security Council and Germany to curb its nuclear program.
However, the administration of former US President Donald Trump reimposed them.
During Trump's presidency, India also halted crude oil imports from Iran.