Electronic, aircraft parts: Most Indian firms on list supplied dual-use goods

As a effect of the sanctions, US assets and companies owned by the sanctioned entities and individuals are blocked, and American entities are prohibited from transacting with them. Even extracurricular the US, radical and firms that transact with sanctioned entities could look the hazard of sanctions.

The Indian authorities has truthful acold not commented connected the development. A questionnaire sent to the Ministry of Commerce and Industry did not elicit a response.

A fig of authorisation designations pertain to export of dual-use goods — that tin beryllium utilized for some civilian and subject applications — to Russia. Many specified items are portion of the Common High Priority List (CHPL) made jointly by the US, the European Union, Japan, and the United Kingdom. The CHPL lists galore items that Russia “seeks to procure for its weapons programmes”.

In August, The Indian Express had reported that US authorities officials were sensitising Indian companies and exporters to deter them from supplying Russia with dual-use goods, arsenic these could pull Western sanctions. That workout followed a Bengaluru-based institution being sanctioned implicit its alleged relation successful supplying dual-use exertion to Russia. Also, a US Treasury authoritative had, earlier this year, cautioned Indian banks that fiscal institutions engaging with Russia’s military-industrial basal hazard losing entree to the US fiscal system, arsenic per a Reuters report.

“Entities based successful the PRC (China), India, Kazakhstan, the Kyrgyz Republic, Türkiye, and the United Arab Emirates (UAE), among different countries, proceed to merchantability these (CHPL) items (critical to Russia’s military-industrial base) and different important dual-use goods to Russia, including captious components that Russia relies connected for its weapons systems to wage warfare against Ukraine,” the US Department of State said successful a merchandise connected Wednesday.

The US Treasury section said it was acting against entities crossed 17 jurisdictions, including India, China, Switzerland, Thailand and Türkiye. Additionally, the latest sanctions besides people Russian importers and producers of “key inputs and different worldly for Russia’s military-industrial base”.

Delhi-based craft spare parts institution Ascend Aviation and 2 of its directors — Vivek Kumar Mishra and Sudhir Kumar — person been sanctioned by the US Department of State for shipping CHPL items to Russia, including US-origin craft parts.

Another Indian institution — Mask Trans — has been sanctioned for supplying CHPL items, including aviation components, to a Russian steadfast already nether sanctions. The section besides sanctioned 2 India-based companies — TSMD Global and Futrevo — for supplying physics components to sanctioned Russian companies.

Additionally, 15 Indian companies diagnostic successful the latest sanctions database issued by the US Department of Treasury for proviso of dual-use items to Moscow. These see Abhar Technologies and Services, Denvas Services, Emsystech, Innovio Ventures, Pointer Electronics, and RRG Engineering Technologies, which person been sanctioned for supplying electronics, including assorted components and microelectronics.

Galaxy Bearings and Orbit Fintrade are besides connected the database for supplying roller bearings and roller assemblies to a sanctioned Russian company. Machine tools exporters Khushbu Honing, Lokesh Machines, and Sharpline Automation are besides among the sanctioned Indian entities. Shaurya Aeronautics, Shreegee Impex, and Shreya Life Sciences person been sanctioned for supplying assorted dual-use goods and exertion to Russian companies.

India’s exports of machines, car parts, alloy and aluminium products, interior combustion engines, pumps, and different items to Russia are increasing. Exports successful the “engineering goods” class astir doubled, surpassing the $1-billion people successful 2023.

Official information from the Commerce Ministry shows that India’s full exports to Russia successful 2023 surged by 40 per cent, exceeding $4 billion, mostly driven by engineering goods, which astir doubled to $1.32 cardinal successful 2023 from $680 cardinal successful 2022.

This summation successful exports coincides with Russia’s heightened defence investments. In July, the World Bank reported that economical enactment successful Russia was influenced by a sizeable summation successful military-related enactment successful 2023. Russia’s subject spending roseate by 24 per cent successful 2023, reaching an estimated $109 billion, according to the Stockholm International Peace Research Institute (SIPRI).