The US Treasury Department’s Office of Foreign Assets Control (OFAC) has announced a $275 million settlement with India’s Adani Enterprises Limited (AEL) for violating sanctions on Iran. AEL agreed to pay the amount to settle its civil liability for apparent violations of OFAC sanctions on Iran. The violations occurred during AEL’s purchase of liquified petroleum gas (LPG) from a Dubai-based trader between November 2023 and June 2025.
In June 2023, AEL entered the LPG market by importing and selling LPG to Indian customers. Representatives of AEL, including the head of its LPG unit, met with a Dubai-based trading company in July 2023. The Dubai supplier later informed AEL that it could provide LPG through an affiliated entity. Despite red flags, AEL processed 32 US dollar-denominated payments totaling around $192 million for the shipments.
AEL relied on APSEZ’s 2020 OFAC sanctions compliance program at the time. The program prohibited Iranian and/or sanctioned vessels and Iranian-origin cargo from entering APSEZ-controlled ports. The Dubai supplier, who claimed to supply LPG mainly from Oman and Iraq, was found to be a conduit for illicit Iranian supply. Despite red flags indicating the true source of the cargo, AEL continued the relationship, learning of concerns about Iranian origins of the cargos on multiple occasions.
