Alleged supply of chemicals to Iran: India tells US that sanctions on Indian firms not justified

New Delhi
28 December 2005

Amid the negotiations with the United States on the
civil nuclear deal, India on Wednesday termed as unjustified the reports
about imposition of sanctions by the Bush administration on two Indian
companies for allegedly selling chemical materials to Iran.

The spokesman of the Ministry of External Affairs, Mr Navtej Sarna, told
reporters that it was New Delhi's view that the two companies named had
not acted in violation of Indian laws or regulations.

A US media report on Tuesday said that the two Indian chemical
companies -- Sabero Organics Gujarat Limited and Sandhya Organics
Limited -- along with Chinese and Austrian firms will soon be sanctioned
by US President George Bush's administration under the US Iran
Proliferation Act, 2000, for allegedly selling missile goods and chemical
arms materials to Iran.

The spokesman said that the "imposition of sanctions by the US on our
firms, which in our view have not acted in violation of our laws or
regulations, is not jusified." "The Government," he said, "also reiterates
that sactions against Dr YSR Prasad should be removed."

He said the sanctions related to the transfer of some chemicals to Iran.
"Our preliminary assessment is that the transfer of such chemicals is not
in violation of our regulations or our international obligations," he said.

The spokesman observed that the government's commitment to prevent
onward proliferation was second to none and that it has instituted a
rigorous system of export controls. "Our track record in this regard is well
known. India is working with international community including with the
US as a partner against proliferation," he said.

The spokesman said the government has also seen the reports about the
removal of sanctions on Dr C Surendar by the US Government. "The
removal of sanctions on Dr C Surendar vindicates Government's position
on this matter. Since the imposition of sanctions in September 2004,
Government has maintained that this had no justification. Accordingly, we
had urged the US Government to review the issue and withdraw the
sanctions," he said.

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