US and EU warn Indian exporters on Russia trade risks

The outlet’s sources said that Indian firms have been briefed on what items fall under sanctions and also which components could be considered dual-use goods – meaning they can have both military and civilian applications. Indian companies have been warned that failure to comply may lead to sanctions being imposed on them, the report noted.

“Recently officials from sanctions teams of both the US and the EU met Indian industry representatives to educate them on the 50 sanctioned items featuring in their joint list of common high priority items and the steps they needed to take to ensure that these don’t flow to the Russian battlefield,” a source told the newspaper.

Officials from the US Bureau of Industry and Security (BIS) and Office of Foreign Assets Control (OFAC), along with a delegation led by EU sanctions envoy David Sullivan, have visited India over the past few months to deliver the warnings, according to the report published on Thursday.

The development follows the sanctions imposed by the US government last October that targeted nearly 400 entities and individuals worldwide for allegedly supporting Russia’s military-industrial capabilities.

Among those sanctioned were 19 Indian companies and two Indian nationals accused of supplying electronic, engineering, and aviation components to Russia. The US Treasury Department then stated that the sanctions were aimed at punishing “third party countries” that are seen as providing material assistance to Moscow.

India has maintain robust diplomatic and trade relations with Russia ever since the escalation of the Ukraine crisis, with trade surging in several sectors, including energy, pharmaceuticals, engineering goods, and consumer products. Despite Western pressure, India has continued to advocate for its right to maintain an independent trade policy.

Bilateral trade between India and Russia has grown significantly over the past two years and currently stands at $66 billion. The leaders of the two nations have set a target of reaching $100 billion in bilateral trade by 2030. At the same time, both countries have emphasized the need to diversify the makeup of bilateral trade, which has been one-sided. Last year, for example, India’s exports to Russia stood at less than $5 billion, according to Indian government data.