UPSC Prelims Practice Questions — U.S. sanctions 4 India-based firms over Iran imports
Q1. With reference to the mechanism of United States secondary sanctions, consider the following statements:
1. Secondary sanctions operate against non-U.S. persons located in third countries who transact with a designated target, even where the transaction has no United States jurisdictional nexus.
2. The International Emergency Economic Powers Act empowers the U.S. President to regulate such economic transactions only after the Congress has separately declared war upon the target State.
3. The International Emergency Economic Powers Act was enacted in 1977 as a reform of the Trading with the Enemy Act of 1917, alongside the National Emergencies Act of 1976.
4. Designations made under such authorities are administered by the Office of Foreign Assets Control in the Department of the Treasury, which blocks assets within U.S. jurisdiction and bars U.S. persons from dealings.
Which of the statements given above is/are correct?
- Secondary sanctions operate against non-U.S. persons located in third countries who transact with a designated target, even where the transaction has no United States jurisdictional nexus.
- The International Emergency Economic Powers Act empowers the U.S. President to regulate such economic transactions only after the Congress has separately declared war upon the target State.
- The International Emergency Economic Powers Act was enacted in 1977 as a reform of the Trading with the Enemy Act of 1917, alongside the National Emergencies Act of 1976.
- Designations made under such authorities are administered by the Office of Foreign Assets Control in the Department of the Treasury, which blocks assets within U.S. jurisdiction and bars U.S. persons from dealings.
- A. 1 and 3
- B. 2 and 4
- C. 1, 3 and 4
- D. 2, 3 and 4
Q2. Consider the following statements distinguishing primary sanctions from secondary sanctions in the United States sanctions system:
1. Primary sanctions bind U.S. persons and transactions falling within U.S. jurisdiction, whereas secondary sanctions reach third-country persons who have no such jurisdictional connection with the United States.
2. The International Emergency Economic Powers Act of 1977 replaced the emergency-powers framework earlier operating under the Trading with the Enemy Act of 1917, while the National Emergencies Act of 1976 obliged the President to notify the Congress of a declared emergency.
3. Unlike primary sanctions, secondary sanctions can be imposed only against persons already named on the United Nations Security Council Consolidated List maintained under Article 41 of the Charter.
Which of the statements given above is/are correct?
- Primary sanctions bind U.S. persons and transactions falling within U.S. jurisdiction, whereas secondary sanctions reach third-country persons who have no such jurisdictional connection with the United States.
- The International Emergency Economic Powers Act of 1977 replaced the emergency-powers framework earlier operating under the Trading with the Enemy Act of 1917, while the National Emergencies Act of 1976 obliged the President to notify the Congress of a declared emergency.
- Unlike primary sanctions, secondary sanctions can be imposed only against persons already named on the United Nations Security Council Consolidated List maintained under Article 41 of the Charter.
- A. 1 only
- B. 1 and 2 only
- C. 2 and 3 only
- D. 1, 2 and 3
Q3. Among the India-based entities designated in August 2026 for trade in Iranian-origin petroleum and petrochemical products, which one was cited for the largest value of such imports?
- A. Sadashiva Overseas Limited, cited for imports of Iranian-origin petroleum products worth about US$69 million
- B. PP Softtech Private Limited, cited along with its director for imports worth about US$25 million
- C. Prakrutees Infra Impex Private Limited, cited for imports of petroleum products worth about US$25 million
- D. Portease Partners LLP, a customs broker cited along with two of its designated partners
Q4. Consider the following statements comparing the August 2026 United States sanctions action on Iran with its preceding tranches:
1. The August 2026 action widened designations to India-based firms that imported Iranian petroleum and petrochemical products, whereas the preceding tranches had concentrated on vessel owners, tanker managers, brokers and shipping-linked entities.
2. Unlike every earlier tranche, the August 2026 designations were issued exclusively by the U.S. Department of the Treasury, the Department of State having no role in naming entities.
3. The August 2026 campaign identified five sectors of Iran's economy — digital assets, technology, gold, aviation and shipping — as targets, and covered nearly 60 individuals, companies and vessels across several jurisdictions.
Which of the statements given above is/are correct?
- The August 2026 action widened designations to India-based firms that imported Iranian petroleum and petrochemical products, whereas the preceding tranches had concentrated on vessel owners, tanker managers, brokers and shipping-linked entities.
- Unlike every earlier tranche, the August 2026 designations were issued exclusively by the U.S. Department of the Treasury, the Department of State having no role in naming entities.
- The August 2026 campaign identified five sectors of Iran's economy — digital assets, technology, gold, aviation and shipping — as targets, and covered nearly 60 individuals, companies and vessels across several jurisdictions.
- A. 1 only
- B. 1 and 2 only
- C. 1 and 3 only
- D. 1, 2 and 3
Q5. In the context of the Joint Comprehensive Plan of Action on Iran's nuclear programme, the term 'snapback' refers to which one of the following?
- A. A procedure by which United Nations sanctions earlier terminated are reimposed upon a participant notifying significant non-performance of commitments
- B. A procedure by which Iran's permitted enriched-uranium stockpile reverts to its pre-agreement ceiling once agency inspections lapse
- C. A procedure by which Iran's crude oil export volumes revert to their pre-embargo levels once the European Union restrictions are withdrawn
- D. A procedure by which Iranian assets frozen abroad revert to Tehran in tranches as the atomic energy agency certifies compliance
Q6. The Joint Comprehensive Plan of Action was endorsed by the United Nations Security Council through which one of the following resolutions, adopted unanimously in July 2015?
- A. Resolution 1737
- B. Resolution 1747
- C. Resolution 1929
- D. Resolution 2231
Q7. Under the long-term main contract signed on 13 May 2024 between India Ports Global Limited and the Ports and Maritime Organization of Iran, India is to equip and operate the general cargo and container terminal at Chabahar for a period of how many years from the date of signing?
- A. Five years
- B. Seven years
- C. Ten years
- D. Fifteen years
Q8. Consider the following pairings relating to India's engagement with Chabahar Port:
1. Shahid Beheshti — the Chabahar terminal whose general cargo and container operations were contracted to India Ports Global Limited in May 2024.
2. Ports and Maritime Organization — the Iranian counterparty that signed the 2024 long-term main contract with the Indian side.
3. Ministry of External Affairs — the Union Ministry whose Minister travelled to Chabahar to witness the signing of the 2024 long-term main contract.
4. International North-South Transport Corridor — the multimodal corridor to Central Asia which the Chabahar contract is expected to help open up.
Which of the above is/are correctly identified?
- Shahid Beheshti — the Chabahar terminal whose general cargo and container operations were contracted to India Ports Global Limited in May 2024.
- Ports and Maritime Organization — the Iranian counterparty that signed the 2024 long-term main contract with the Indian side.
- Ministry of External Affairs — the Union Ministry whose Minister travelled to Chabahar to witness the signing of the 2024 long-term main contract.
- International North-South Transport Corridor — the multimodal corridor to Central Asia which the Chabahar contract is expected to help open up.
- A. 1, 2 and 4
- B. 2 and 3
- C. 1 and 4 only
- D. 1, 3 and 4
Q9. The underground crude oil storage caverns at Visakhapatnam, Mangaluru and Padur, with a combined capacity of 5.33 million metric tonnes, are owned and maintained by which one of the following?
- A. Petroleum Planning and Analysis Cell, an attached office under the Ministry of Petroleum and Natural Gas
- B. Indian Strategic Petroleum Reserve Limited, a special purpose vehicle under the Ministry of Petroleum and Natural Gas
- C. Directorate General of Hydrocarbons, a technical regulatory arm under the Ministry of Petroleum and Natural Gas
- D. Oil Industry Development Board, a statutory body constituted under the Ministry of Petroleum and Natural Gas
Q10. India's Phase-I strategic crude oil storage capacity of 5.33 million metric tonnes is officially estimated to meet the country's crude oil requirement for approximately how many days?
- A. About 9.5 days
- B. About 22 days
- C. About 45 days
- D. About 64.5 days
Q11. Restrictions flowing from United Nations Security Council resolutions on Iran are given effect within India's foreign trade regime primarily through notifications issued by which one of the following?
- A. Directorate General of Trade Remedies, functioning under the Ministry of Commerce and Industry
- B. Directorate General of Foreign Trade, functioning under the Ministry of Commerce and Industry
- C. Central Board of Indirect Taxes and Customs, functioning under the Ministry of Finance
- D. Financial Intelligence Unit-India, functioning under the Ministry of Finance
Q12. The very first sanctions regime established by the United Nations Security Council, imposed in 1966, was directed against which one of the following?
- A. South Africa
- B. Southern Rhodesia
- C. Portugal
- D. The former Yugoslavia