US Sanctions Indian Network Accused of Selling False Ship Flags to Iran-Linked Tankers

The department said the action targeted what it called "the vast criminal network" run by Suniel Kumar Sharma and his wife, Jaspreet Preeti Shahid, who are based in Chandigarh, together with two other Indian citizens who head two of the couple's businesses and nine entities connected to Sharma. "Their schemes have provided false flags and certifications to sanctioned vessels involved in transporting Iranian petroleum, including vessels operating on behalf of the Iranian military and its proxies," the department said in a statement.

The case is a warning for shipping companies, port operators, insurers and traders across the Gulf. Treasury's Office of Foreign Assets Control issued a separate alert to industry on the sanctions risks of dealing with vessels that may be sailing under false flags. Ships with fraudulent registrations can avoid international safety and environmental rules and typically carry no indemnity insurance, leaving the coastal states whose waters they use exposed to potentially large damages.

According to Treasury, Sharma and Shahid falsely claimed to represent the maritime authorities of countries including Guyana, Eswatini and Laos. Their network bought web domains and built websites that claimed to offer flagging, seafarer training and certification and vessel classification on behalf of those countries and others, and ran a set of India-based companies used to set up the fraudulent registries. Al Jazeera reported that Treasury said the scheme dated back to at least 2014.

Treasury also designated Turkey-based Fugo Ground Services, which it said provided ground handling and other services to US-sanctioned Iranian airlines that still fly to Turkey, including Iran Air Tour, Saha Airlines, Taban Airlines and Ata Airlines.

"We know where you are, and we will sanction those who continue supporting the Iranian regime, whether by land, sea, or air," Treasury Secretary Scott Bessent said.

The designations freeze any US-linked assets of those named and bar most dealings with them, and the restrictions extend to companies they own at least 50 per cent of. Foreign companies and banks that help evade the measures can also face penalties.

The sanctions are part of the Trump administration's "Operation Economic Outcast", which aims to cut off the oil revenue Iran uses to fund its war with the United States and Israel. Treasury said last week that the campaign had pushed the rial to new lows and driven Iranian inflation to around 90 per cent. The squeeze has tightened since the US reimposed its blockade of Iranian ports on July 14, after a memorandum of understanding between Tehran and Washington to end the war broke down.

The announcement came a day after Democrats won control of both houses of Congress in midterm elections in which voter anger over the war and its effect on fuel prices featured heavily. Brett Erickson, managing principal of Obsidian Risk Advisors, said: "Even after a brutal electoral defeat, Washington appears unwilling to take even the smallest step toward de-escalation."

India has not commented on the sanctions.