US Sanctions against Indian Firms and Individuals
In the past several years, the US State Department has imposed sanctions against Indian firms and individuals for selling weapons of mass destruction material, or assisting in Iran’s WMD programs.
The US has several pieces of legislation which require the US administration to impose sanctions against firms or individuals selling or providing sensitive technologies to Iran.
The Iran-Libya Sanctions Act (ILSA)
The ILSA was passed unanimously by Congress in 1996. The legislation prevents US companies from investing in Iran, or from US companies investing in foreign firms that themselves invest in Iran more than $20 million. The ILSA has done little to change Iranian behavior.
The Iran Syria Nonproliferation Act
Until 2000 the Iran Nonproliferation Act, this legislation was later broadened to include Syria. Under this Act, the President is required to impose sanctions against governments and individuals if missiles, WMD or advanced conventional weapons technologies is transferred to Syria or Iran. The scope of sanctions was extended, and the inclusion of holding governments liable was an addition. The President is required to submit a report every year on adherence to the Act.
Two Indian scientists were sanctioned by the US in 2004 for working with Iran on its nuclear program. One of the scientists, C. Surendar, had the sanctions lifted after about one year. The other’s, Y. S. R. Prasad, remained for the full two years.
In December 2005, the US sanctioned two Indian chemical companies for selling chemicals to Iran. The companies, Sabero Organics Gujarat Ltd and Sandhya Organics Ltd, denied wrong-doing and claimed their sales were within the prevue of the Chemical Weapons Convention.
On Friday July 28, 2006, US government officials announced the decision to impose sanctions on two Indian firms, Balaji Amines Ltd and Prachi Poly Products, for selling missile parts to Iran (later it was determined to be chemicals sold). The sanctions prevent the companies from having any business with the US government and from buying certain US high-tech products for two years.
The timing of this announcement brought forth angry criticism from Democratic lawmakers and arms-control experts. The decision was announced two days after the House had overwhelmingly voted in favor of the US India civil nuclear cooperation bill, riding on the fact that India has a clean proliferation record. The White House has been accused of deliberately withholding this information until after the vote to ensure its passage.
The administration denies these charges, releasing the decision with the semi-annual Iran Nonproliferation Act Compliance Record which was due July 1.
Apparently New Delhi was also not informed of this decision until it was announced.
