Indian-Iranian shipping company liquidated as Western sanctions begin to bite

A government official says India will get control of six ships following a decision to dismantle a joint Iranian-Indian shipping company hit by international sanctions on Iran.

The company was finding it difficult to get customers or insurance for its ships because of the sanctions. Last week, the Indian government agreed to close down the 39-year-old joint venture.

The official said Thursday that the state-owned Shipping Corporation of India will take over six of the seven vessels belonging to the Iran-O-Hind company.

The official spoke on condition of anonymity because he was not authorized to speak to the media.

Western countries have imposed sanctions on Iran to deter it from pursuing a nuclear weapons program. Iran insists its nuclear program is for peaceful purposes.