New Delhi: Japan announced on Friday (June 21) that it will be imposing sanctions on 11 companies – including one based out of India – “for helping Russia evade punitive measures related to its invasion of Ukraine”, Japan Today reported.
Other countries hosting entities sanctioned by Japan include China, the United Arab Emirates, Uzbekistan and Kazakhstan.
The sanctions will include “asset freezes and export bans”, the report stated.
The Indian company in the list, Si2 Microsystems, is based out of Bengaluru and describes itself as a system-in-package and microsystems solutions provider. In February this year, the European Union too had sanctioned the same company as part of its 13th package of sanctions against Russia. In November last year, the US too had imposed sanctions on the company.
The US laid out the reasons behind the sanctions as:
“This entity is added to the Entity List for providing support to Russia’s military and/or defense industrial base. Specifically, this entity supplied Russian consignees connected to the Russian defense sector with U.S.-origin integrated circuits after March 1, 2023. These integrated circuits are classified under Harmonized Tariff System (HTS)-6 codes 854231, 854232, 854233, and/or 854239. These HTS-6 codes are identified under supplement no. 4 to part 746 (Russian and Belarusian Industry Sector Sanctions Pursuant to § 746.5(a)(1)(ii)). All U.S.-origin items classified under these HTS-6 codes have been controlled for export and reexport and transfer within Russia since September 15, 2022. Such U.S.-origin items require a license under § 746.5(a)(1)(ii) of the EAR when destined to Russia or Belarus.
Therefore, the documented shipments by this entity to Russia of such U.S.-origin items are contrary to U.S. national security and foreign policy interests under § 744.11(b) of the EAR. This entity will be added with a license requirement for all items subject to the EAR and a license review policy of denial.”
This company, according to The Hindu, is a partner of the Ministry of Electronics and Information Technology for a very recent Atmanirbhar Bharat (Make in India) collaboration. But the Russia-related sanctions are the first time it has hit trouble. It had earlier been banned by the US from “dual-use” technology transfers, and its directors had been placed on Lookout Circular notices by Indian authorities over debt defaults.
Indian officials had told the newspaper then that the government was examining the sanctions and would decide on whether to protest them. “India has done nothing illegal. It is their [the EU’s] interpretation that ties with Russia are a problem. As far as the government is concerned the sanctioned company is an industry partner and MeitY’s research partner,” an official told the newspaper.
