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India Emerges as Major Supplier of Critical Technologies to Russia, Raising Concerns for US and EU
India has become the second-largest supplier of restricted critical technologies to Russia, surpassing $60 million in exports of microchips, circuits, and machine tools in both April and May, and reaching $95 million in July. This surge in exports has raised concerns among US and European officials, highlighting the challenge in cutting off supplies fueling Russia’s military efforts in Ukraine.
India’s Growing Role in Supplying Restricted Technologies
According to officials, India now accounts for nearly 20% of the sensitive technology that reaches Russia’s military-industrial complex, second only to China. As direct exports of these dual-use items are banned to Russia, the country has resorted to purchasing them through third-party nations like India. These technologies are essential for Russian weapons and other military equipment.
Efforts by Ukraine’s allies to curb these exports have been met with little response from Indian authorities. India’s Ministry of External Affairs declined to comment on the matter when asked, frustrating US and European officials who have repeatedly raised concerns about the growing exports.
Challenges in Sanctions Enforcement
The US and European Union have focused on stopping the flow of technologies used in Russian weapons. While Turkey and the UAE were previously key transshipment points, India, along with Malaysia and Thailand, has emerged as a new hub. India’s continued imports of Russian oil, despite allied efforts to restrict sales, have further complicated the situation.
A significant driver of the trade between India and Russia is the large stockpile of rupees Russia has accumulated from oil sales, allowing for continued trade in other goods. US and EU sanctions agencies have recently increased their focus on India, with officials visiting the country several times to urge stricter control over shipments. Some Indian firms have already come under Western sanctions.
In a July letter, US Deputy Treasury Secretary Wally Adeyemo warned Indian companies and banks about the risks of engaging with Russia’s military-industrial base, signaling rising concerns about the implications of these transactions.
As India balances its strategic partnerships with both the US and Russia, its role in supplying restricted technologies presents a growing challenge for Western efforts to curb Russia’s military capabilities.
