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MEA: Entities US Accused of Evading Russia Sanctions Don't Break Indian Law; Working to Sensitise Firms

Washington had earlier this week accused 19 Indian firms and two Indian nationals of ‘enabling Russia’s prosecution of its illegal war’.
Photo: U.S. Army RDECOM/Wikimedia Commons. CC BY 2.0.
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New Delhi: After the US government sanctioned 21 Indian entities for allegedly supplying Russia with technologies it needs to support its invasion of Ukraine, India said the entities did not violate domestic laws but that it was working to “sensitise Indian companies on applicable export control provisions”.

The external affairs ministry was also working with relevant Indian government departments and agencies to “inform them [the entities] on new measures being implemented that could impact Indian companies in certain circumstances,” it said.

“We are also in touch with the US authorities to clarify issues,” ministry spokesperson Randhir Jaiswal added on Saturday (November 2).

Jaiswal did not reiterate India’s long-standing position of opposing unilateral sanctions by countries, i.e. those not imposed by the UN.

On Wednesday, the US state and treasury departments sanctioned 19 Indian companies and two Indian nationals among a total of close to 400 entities in countries including China, Malaysia, Thailand, Turkey and the UAE whom they charged with “enabling Russia’s prosecution of its illegal war” against Ukraine.

The action targets those entities that allegedly evaded sanctions against Moscow and provided Russia with “items critical to Russia’s military-industrial base” as well as other dual-use goods, which are those that may be used for civilian or military purposes.

Indian firms named include Ascend Aviation, accused of supplying Russian companies with US-origin aircraft parts; Futrevo, accused of providing electronic components to a Russian drone manufacturer; and Shreya Life Sciences, accused of sending US-trademarked servers designed for AI and machine learning applications to Russia.

Reportedly based across India, they also allegedly worked with proscribed Russian entities to procure export-controlled items and supplied aviation parts, electronic integrated circuits, machines for data processing, roller bearings and other items to Russia.

US deputy treasury secretary Wally Adeyemo said on Wednesday that Washington “and [its] allies will continue to take decisive action across the globe to stop the flow of critical tools and technologies that Russia needs to wage its illegal and immoral war against Ukraine.”

When asked on Saturday about the Indian companies being sanctioned, Jaiswal said India had “a robust legal and regulatory framework on strategic trade and non-proliferation controls” and added that New Delhi was part of three key of the four multilateral export control regimes in the world.

He continued: “Our understanding is that the sanctioned transactions and companies are not in violation of Indian laws. Nevertheless, in keeping with India’s established non-proliferation credentials, we are working with all the relevant Indian departments and agencies to sensitise Indian companies on applicable export control provisions, as also inform them on new measures being implemented that could impact Indian companies in certain circumstances.

“Regular strategic trade/export control outreach events for Indian industries and stakeholders are being carried out by agencies of the government of India.”

India has never explicitly condemned Russia for its 2022 invasion of Ukraine and has consistently abstained from UN resolutions criticising Moscow.

However, it has also called for a peaceful resolution through dialogue and the protection of civilians in conflict.

Speaking to Reuters, a US state department official said that Wednesday’s action was intended to send a message to India that Washington would take action against Indian entities if ‘progress is not made through communication’.

“With India, we have been very direct and blunt with them about the concerns we have about what we see as sort of emerging trends in that country that we want to stop before they get too far down the road,” the unnamed official said.

The sanctions were imposed under a 2021 executive order that allow the US government to impose asset freezes and visa restrictions against targeted entities.

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