Nagpur: Facing US sanctions on alleged export of war material to strife-torn Sudan, Nagpur’s SBL Energy is now gearing up to seek special permission from the US Treasury Department’s Office of Foreign Assets Control (OFAC) to sell explosives in the American market. SBL has started the process of filing an appeal against the sanctions.The company’s plant has revived operations in Nagpur, making a whole range of explosives, including TNT. All other units except the facility making detonators, have been revived. The licence for the detonator plant remains suspended following an accident in April . The company’s domestic buyers largely include the mining companies.Sources in the company’s management told TOI that the lawyers’ charges have been remitted after getting approval from OFAC. “Now, as the petition is being drafted, the company is also eyeing the US market. “The company hopes to get permission from OFAC on a case-to-case basis, notwithstanding the sanctions against it, while it shall file an appeal to lift the sanctions entirely,” said sources in the management.
What do you think is more important for SBL Energy?
3k+ users shared opinion today
5k+ users already voted today
3k+ users shared opinion today
The permission would come after strict scrutiny of the quantity to be exported and the KYC done for the buyers by SBL, a source said. SBL would also seek approval for selling to European countries in dollars. “Since there are sanctions, SBL will have to again seek approval for every transaction in Europe,” said the source.The US had slapped sanctions on SBL Energy on the grounds that it had been selling explosives in Sudan, which helped fuel the civil war in the country. As per US authorities, the material sold by SBL ultimately went for military purposes. Target Multiactivities Company (TMAC), the Sudanese company to which SBL sold its products, controlled entities in the arms business, says the US.On the other hand, SBL, says that it had solely exported industrial explosives, which are used in mining operations. It also had an end-use certificate which mentioned that the material would be put into civilian use. The petition against the sanctions is also being based on these grounds, sources in the management said.
