‘US sanction against two local firms unjustified’

NEW DELHI: The government on Monday called the US’ imposition of sanctions against two Indian firms for trading with Iran ‘unjustified’ and defended India’s non-proliferation record. The US had imposed sanctions against Balaji Amines and Prachi Poly Products under the US Iran-Syria Non-Proliferation Act, accusing the firms of passing on chemicals that can be used by Iran for developing weapons of mass destruction or missile systems.

The Indian government has said that the firms had not acted in violation of Indian laws or regulations. “Our preliminary assessment is that the transfer of such chemicals was not in violation of our regulations or our international obligations,” a ministry of external affairs statement said. “The Government of India’s commitment to prevent proliferation is second to none. We have instituted a rigorous system of export controls,” the statement added.

The government also reminded the US that India is working with the international community, including the US, as a partner against proliferation.

The US sanctions against the two firms came just a couple of days after the US House of Representatives had passed a proposed legislation dealing with the Indo-US civilian nuclear deal.

This is not the first time that the US is imposing sanctions on Indian companies for trading with Iran. Earlier in December ’05, the US had imposed sanctions on two chemical exporters — Sabero Organics Gujarat and Sandhya Organic Chemicals — for exporting chemicals to Iran. The Indian government is still in a dialogue with the US government over the sanctions imposed against these two companies. At that time too, India had said the sanctions were unjustified.

Sabero Organics had exported dual-use items for agriculture purposes to an Iranian company in ’04, while Sandhya Chemicals had supplied chemicals to another party, which in turn sent them to Iran. Companies that face US sanctions cannot receive US government contracts, assistance or military trade. Apart from these two companies, the US has, in the past, imposed sanctions against five other companies or persons under the US Iran-Syria Non-Proliferation Act.