The United States on Wednesday imposed sanctions on about 400 entities and individuals, including four Indian firms, from over a dozen countries for helping Russia’s war efforts in Ukraine. While this is not the first time that India has been targeted by US sanctions, this was the “most concerted push so far against third-country evasion”, a US State Department official told Reuters.
“The United States is today sanctioning nearly 400 entities and individuals for enabling Russia’s prosecution of its illegal war. In this action, the Department of State is imposing sanctions on more than 120 individuals and entities. Concurrently, the Department of the Treasury is designating more than 270 individuals and entities. The Department of Commerce is also adding 40 entities to its Entity List,” a US State Department statement said.
One of the Indian firms named in the statement is Ascend Aviation India Private Limited that “sent over 700 shipments to Russia-based companies” between March 2023 and March 2024. “These shipments included over $200,000 worth of CHPL items, such as US-origin aircraft components,” the US State Department said, and named its directors as well.
The US also named Mask Trans “an India-based company involved in the supply of over $300,000 worth of CHPL items such as aviation components to Russia-based and U.S.-designated S 7 ENGINEERING LLC from June 2023 to at least April 2024”.
The US then listed firms that have been designated for “operating or having operated in the technology sector of the Russian Federation economy”. It said that “TSMD Global private limited is an India-based company that shipped at least $430,000 worth of CHPL items to Russia-based companies, including Electron Komponent and the U.S.-designated companies: Limited Liability company VMK, Alfa limited liability company and joint stock company Avtovaz…these shipments, which occurred between July 2023 and March 2024, included U.S.- and EU origin BIS CHPL Tier 1 and 2 items such as electronic integrated circuits, central processing units, and other fixed capacitors”.
It added, “Futrevo is an India-based company involved in the supply of over $1.4 million worth of CHPL items such as electronic components to Russia-based and U.S.-designated Limited Liability Company SMT-ILOGIC, the manufacturer of Orlan drones with Russia-based and U.S.-designated Special Technology Center. The shipments were from January 2023 to at least February 2024.”
The US State Department statement said that designations aim to disrupt sanctions evasion and target entities in multiple third countries, including India, China, Malaysia, Thailand, Türkiye, and the United Arab Emirates.
“The United States will continue to use all tools at its disposal to disrupt support for Russia’s military-industrial base and curtail the Kremlin’s ability to exploit the international financial system and generate revenue in furtherance of its war against Ukraine…the Department seeks to disrupt the networks and channels through which Russia procures technology and equipment from entities in third countries to support its war effort. Today’s designations target producers, exporters, and importers of items critical to Russia’s military-industrial base,” the statement said.
“Those items include microelectronics and computer numerical control items (CNC) on the Common High Priority List (CHPL), as identified by the U.S. Department of Commerce’s Bureau of Industry and Security (BIS) alongside the European Union (EU), United Kingdom (UK), and Japan…. entities based in the PRC [People’s Republic of China]India, Kazakhstan, the Kyrgyz Republic, Türkiye, and the United Arab Emirates (UAE), among other countries, continue to sell these items and other important dual-use goods to Russia, including critical components that Russia relies on for its weapons systems to wage war against Ukraine,” it said.
Indian firms have been targeted in the past as well.
In November 2023, Si2 Microsystems had been added to the US’s restricted ‘Entities List’ for supplying “US-origin integrated circuits” to the Russian military despite the transfers being banned after the Russian invasion of Ukraine, without the required licence.
US ambassador Eric Garcetti had said recently that any Indian company that violates global sanctions against Russia will have to be aware of the “consequences” they face when they are trying to do business with countries in Europe, America and their global allies.
In a speech in July, Garcetti had also said that the India-US relationship was wider and deeper than it has ever been, but it was not deep enough to be taken “for granted”. The remarks were delivered days after Prime Minister Narendra Modi’s visit to Russia.
