India rejects U.S. sanctions for dealing with Iran

India rejected U.S. sanctions imposed on two of its firms that export what Washington says are banned chemicals to Iran, Reuters news agency reported.

The two Indian companies - Amines and Prachi Poly Products - are among seven foreign firms that the U.S. imposed sanctions on last Friday, claiming that they had transferred materials to Tehran that could contribute to the development of weapons of mass destruction.

The Indian foreign ministry denied Washington's claims, stressing that the trade would not lead to weapons proliferation.

"Our preliminary assessment is that the transfer of such chemicals was not in violation of our regulations or our international obligations," the ministry said in a statement.

It also stressed that India's commitment to prevent proliferation was "second to none", and that a tough export control system was in place. 

"In this context the imposition of sanctions by the U.S. on our firms, which in our view have not acted in violation of our laws or regulations, is not justified," the statement added. 

Washington's sanctions - the latest to be imposed under the Iran Non-Proliferation Act of 2000 - prohibit the seven foreign firms, which also include two Russian companies, from doing business with the U.S. government or acquiring American high-technology items.

Moscow had earlier said that the U.S. sanctions are part of unlawful efforts to force foreign companies to follow American rules, and that the Bush administration is punishing its own companies by taking away their possibilities to cooperate with Russian firms.

The sanctions on the two Indian firms have been very controversial.

Critics accuse the Bush administration of withholding the announcement of the sanctions until the House of Representatives approves legislation allowing nuclear technology sales to India.

Supporters of the U.S.-India nuclear deal say that New Delhi is a responsible protector of sensitive technology, but critics cite the sanctions as proof of a flawed record.

The U.S. has in the past imposed sanctions on dozens of Indian companies it said deal with sensitive, dual-use technologies, particularly after India carried out nuclear tests in 1998.

But most of the sanctions have been lifted after the improvement of ties between the U.S. and India.