The US government is actively engaging with Indian companies and exporters, urging them to avoid supplying Russia with items and technologies that could be repurposed for military use, a government official disclosed. This initiative stems from concerns that such exports might inadvertently contribute to Russia's defense capabilities, potentially triggering Western sanctions.
The US focus on this issue intensified following the imposition of sanctions on Bengaluru-based Si2 Microsystems last year for allegedly providing dual-use technology to Russia. The list of sanctioned items encompasses various dual-use goods, including electronic components, machine tools, drones, and drone software, all of which have both civilian and military applications.
US officials have been conducting consultations and awareness campaigns with Indian industry representatives, emphasizing the need to refrain from exporting specific products like chemicals, aeronautic parts, and missile system components.
Furthermore, the US Treasury has warned Indian banks that engaging with Russia's military-industrial complex could jeopardize their access to the US financial system.
This cautionary approach extends beyond India. In June, US Treasury Secretary Janet Yellen expressed concerns about Chinese exports of dual-use goods to Russia. The US has blacklisted over 300 companies, highlighting China as a major supplier of critical items like machine tools and microelectronics, which are vital for munitions and rocket propellant production.
While India's Ministry of Commerce and Industry has indicated its intention to ease export norms for certain dual-use products, the official clarified that the items under US scrutiny are not currently subject to export licensing in India.
India's exports to Russia, including machinery, auto parts, steel, and chemicals, have witnessed a significant surge, particularly in engineering goods. This increase coincides with Russia's heightened defense investments, which have grown substantially in recent years.
The World Bank has noted that Russia's economy, despite initial setbacks from sanctions, has rebounded due to factors like increased military spending and trade diversification to countries like India and China.
