- Exports reportedly exceeded $60m in both April and May and reached $95m in July.
- India’s rising role as a second-biggest supplier presents a multifaceted challenge for international community.
- About one-fifth of the sensitive technologies fueling Russia’s military-industrial complex now originate from India.
India has emerged as a significant supplier of restricted critical technologies to Russia, a development that poses challenges for Western nations seeking to limit Moscow’s military capabilities amid the ongoing conflict in Ukraine.
According to US and European officials, Indian exports of sensitive items, including microchips, circuits, and machine tools, have surged dramatically. These exports reportedly exceeded $60 million in both April and May and reached $95 million in July, positioning India as the second-largest supplier of such technologies to Russia, trailing only China.
The trend is particularly concerning for Ukraine’s allies, who have expressed frustration over India’s apparent indifference to their concerns regarding these exports. Despite diplomatic efforts to address the issue, Indian officials have largely remained unresponsive, and the Ministry of External Affairs has declined to comment on the matter.
The implications of this development are profound, as it is estimated that nearly one-fifth of the sensitive technologies fueling Russia’s military-industrial complex now originate from India.
The complexities surrounding this situation are further compounded by the geopolitical landscape. While the United States and the European Union have focused their efforts on restricting direct exports of dual-use technologies to Russia, the Kremlin has adeptly navigated these sanctions by sourcing materials from third countries, including India, Malaysia, and Thailand.
The shift underscores the difficulties faced by Western policymakers in curtailing Russia’s military capabilities nearly two and a half years after the invasion of Ukraine.
India’s burgeoning role as a transshipment point for restricted technologies is particularly troubling for Western officials, who are simultaneously keen on fostering partnerships with Prime Minister Narendra Modi’s government.
Despite India’s growing ties with Russia, particularly in the realm of energy—where it has become a leading buyer of Russian oil—Western nations are under pressure to ensure that Indian firms do not inadvertently support Russia’s military efforts.
The financial dynamics at play, particularly the accumulation of rupees by Russia from oil sales, have further incentivized this trade. As Indian firms continue to engage with the Russian military-industrial base, US and European sanctions agencies have intensified their scrutiny, warning Indian businesses of the risks associated with such dealings.
In a recent communication, US Deputy Treasury Secretary Wally Adeyemo cautioned the Confederation of Indian Industry about the potential sanctions risks faced by companies involved in these transactions.