Chandigarh-Based Couple, Several Indian Firms Face US Sanctions Over Alleged Support For Iran's Shadow Oil Fleet

 

New Delhi: The United States has imposed sanctions on a Chandigarh-based couple and several companies linked to them for allegedly providing fraudulent maritime registrations and certifications to vessels transporting Iranian oil, helping the country's shadow fleet evade international restrictions.

The US Department of Treasury sanctioned Suniel Kumar Sharma and his wife Jaspreet Preeti Shahid, accusing them of defrauding maritime regulatory administrations across multiple jurisdictions to establish false flagging authorities and maritime classification societies.

 

In an official press release on Wednesday, the Treasury Department alleged that the couple operated a network providing false flags and maritime certifications to sanctioned vessels transporting Iranian petroleum, including ships operating on behalf of Iran's military and its proxies.

According to the department, Sharma and Shahid allegedly established fraudulent maritime registries and classification societies by creating websites that purported to offer services on behalf of countries that had not authorised them.

 

The Treasury said their alleged illegal operations began way back in २०१४, when they allegedly attempted to impersonate the maritime flagging authority of the Caribbean nation of Dominica. It further alleged that their network provided registration services to vessels transporting Iranian petroleum, enabling them to circumvent international restrictions.

"Purporting to represent nations from nearly every continent, from Guyana to Eswatini and Laos, Sharma and Shahid have allowed the Iranian shadow fleet, including those operating on behalf of the Iranian military and its proxies, to evade international restrictions on their operation, " the Treasury Department said in its statement.

"In २०२३, Sharma established the Singapore-based Eswatini Maritime Affairs and International Ship Registry PTE. Ltd. (Eswatini Maritime), which, despite being publicly disavowed by Eswatini authorities, continues to provide flagging services for vessels transporting Iranian petroleum, including the sanctioned vessel PING SHUN (IMO 9२३१9०१), which at the time of its sanctioning had engaged in multiple shipments of Iranian oil, " the Treasury stated.

 

Further, it has been alleged that many of Sharma and Shahid's false flagging registries are not tied to registered companies. "In each case, the Sharma network purchases web domains, creating websites that claim to offer a variety of services on behalf of a country that has not authorized it to provide any of those services. The services often include flagging, seafarer training and certification, and vessel classification, all of which are traditionally handled by legitimate organisations that hold vessels to strict international standards, " it added.

Scott Bessent, the US Treasury Secretary, warned that Washington would take action against individuals and entities continuing to support the Iranian regime. “As we have said many times, under Operation Economic Outcast, you are either with us or against us. We know where you are, and we will sanction those who continue supporting the Iranian regime, whether by land, sea, or air, " Bessent said in a post on X on Thursday (IST).

Notably, several India-based companies associated with the couple have also been designated, including Oceaniek Technologies India and Aryavart Ship Management Private Limited.

 

Other entities named include Precept Trends Private Limited, Polynesia Maritime Private Limited, Alexarya Finserv Private Limited, Alexarya Media and Entertainment Private Limited, Viharaboating Private Limited and Aryavart Maritime and Educational Trust. The Treasury said the sanctions were imposed under Executive Order १३9०२, which targets key sectors of the Iranian economy, including petroleum, petrochemicals and aviation.

Separately, the US also sanctioned Türkiye-based Fugo Ground Services Inc for allegedly providing ground-handling and other services to several US-designated Iranian airlines, including Iran Air Tour, Saha Airlines, Sepehran Airlines, Varesh Airlines, Taban Airlines and Ata Airlines Company. The department said the company continued servicing these carriers despite repeated US warnings about the sanctions risks associated with supporting Iran's aviation sector. The Treasury also issued an alert to the maritime industry, cautioning businesses against dealing with potentially falsely flagged vessels. It said fraudulent registrations could allow ships involved in illicit activities to evade international regulations on crew safety and environmental protection.

As per Bessent's announcement on August २४ this year, Operation Economic Outcast aims to disrupt Iran's economic lifelines by targeting networks involved in oil smuggling, sanctions evasion and the movement of funds.

At least six India-based companies are being designated pursuant to E.O. for being owned or controlled by, or having acted or purported to act for or on behalf of, directly or indirectly, Jaspreet Preeti Shahid:

Precept Trends Private Limited;

Polynesia Maritime Private Limited;

Alexarya Finserv Private Limited;

Alexarya Media and Entertainment Private Limited;

Viharaboating Private Limited; and

Aryavart Maritime and Educational Trust.

Implications Of Sanctions

Following the latest action, all property and interests in property of the designated or blocked persons that are in the United States or in the possession or control of US persons would be blocked and reported to OFAC. This apart, any entities that are owned, directly or indirectly, individually or in the aggregate, ५० percent or more by one or more blocked persons will also be blocked. The Treasury warned that violations could attract civil or criminal penalties for US and foreign persons.