The US has sanctioned more than 30 companies, vessels, and individuals worldwide, including four Indian companies, for their alleged involvement in the trade and transportation of Iranian crude oil and petroleum products. The US Department of the Treasury's Office of Foreign Assets Control (OFAC) described this action as part of a pressure campaign aimed at reducing Iran’s oil exports to zero. According to the OFAC, the sanctioned vessels are responsible for shipping tens of millions of barrels of crude oil, valued at hundreds of millions of dollars. The firms include Austenship Management Private Ltd (Noida), BSM Marine Ltd (Gurgaon), Cosmos Lines (Thanjavur), and Flux Maritime (Navi Mumbai).
“Iran continues to rely on a shadowy network of vessels, shippers, and brokers to facilitate its oil sales and fund its destabilising activities,” said Secretary of the Treasury Scott Bessent.
“The US will use all our available tools to target all aspects of Iran’s oil supply chain, and anyone who deals in Iranian oil exposes themselves to significant sanctions risk.” In 2019, the US administration imposed sanctions on Iranian oil, primarily due to concerns about Iran’s nuclear program, its regional influence, and its ballistic missile development. Following the sanctions, Iran began selling crude oil through a "shadow fleet" or "dark fleet" to avoid detection and circumvent international sanctions or regulations. As of now, India does not import crude oil from Iran due to US sanctions, though prior to the sanctions, Iran was one of India's top three sources of crude oil.
Among those sanctioned are oil brokers based in the United Arab Emirates (UAE) and Hong Kong, tanker operators and managers in India and the People’s Republic of China (PRC), the head of Iran’s National Iranian Oil Company (NIOC), and the Iranian Oil Terminals Company. The OFAC said these entities and individuals are linked to activities that finance Iran’s destabilising operations. India-based Flux Maritime LLP is responsible for managing a vessel that loaded hundreds of thousands of barrels of heavy Iranian crude oil through a ship-to-ship transfer.
Additionally, BSM Marine Limited Liability Partnership, Austinship Management Private Limited, and Cosmos Lines Inc. have been sanctioned for knowingly engaging in significant transactions related to the purchase, acquisition, sale, transport, or marketing of petroleum products or petrochemicals from Iran. This is not the first instance of Indian companies being placed under sanctions for involvement in sanctioned energy transportation and trade through the so-called shadow fleet of tankers. For example, in October, India-based Gabbaro Ship Services was sanctioned for its alleged involvement in the transportation of Iranian oil. In August and September, three India-registered shipping firms were sanctioned by the U.S. over their alleged involvement in transporting liquefied natural gas (LNG) from Russia’s Arctic LNG 2 project, which is also under American sanctions.