India Defends Its Firms Amid U.S. Sanctions Over Russia Ties

The Ministry of External Affairs has pushed back against U.S. sanctions targeting 19 Indian companies and individuals accused of aiding Russia's military. Indian officials assert that the businesses have complied with national laws and maintain international non-proliferation commitments. Industries affected remain confident of business resilience despite the sanctions.

The Ministry of External Affairs (MEA) on Saturday addressed the issue of recently imposed U.S. sanctions on several Indian firms and nationals. A spokesperson emphasized that no national laws have been violated by the Indian companies being targeted by the U.S. State Department. These sanctions involve 19 Indian companies and two individuals accused of allegedly providing materials and technology to Russia amidst ongoing conflict in Ukraine.

Randhir Jaiswal, spokesperson for the MEA, stated, "We have noted the reports of U.S. sanctions. India maintains a rigorous legal and regulatory framework for strategic trade and nonproliferation controls, and is an active member of the Wassenaar Arrangement, the Australia Group, and the Missile Technology Control Regime. We adhere strictly to pertinent UNSC sanctions and resolution 1540 on non-proliferation." He further noted, "Our understanding is that these companies and transactions are not in violation of Indian law. However, we continue to collaborate with Indian departments and agencies to educate Indian firms on export control regulations and introduce them to changes that could affect them."

He added, "The Government of India regularly conducts strategic trade and export control outreach programs for industries and stakeholders. We are also communicating with U.S. authorities to resolve this issue." Companies like Shreegee Impex Private Limited have stated that they operate within the bounds of Indian law and that the sanctions would not significantly impact their operations.

Praveen Tyagi, director of Shreegee Impex Private Limited in Meerut, expressed uncertainty about the sanctions, noting, "These sanctions will not impact our business, as we do not engage in imports or exports with the U.S." Similarly, Rahul Kumar Singh of TSMD Global underscored that their business activities remain unaffected by these sanctions, insisting on the legality and compliance of their operations.

Manoranjan Sharma, Chief Economist at Infomerics Ratings, suggested these actions might aim to influence the upcoming U.S. elections, raising potential tensions between India and the U.S., yet predicting minimal impact. Sharma stated, "We anticipate only a limited effect on India, as relations with the U.S. already face pressure over unrelated issues."

The sanctions target firms that allegedly facilitate the supply of dual-use goods, usable for both civilian and military purposes. The U.S. posits these measures as part of efforts to hold parties accountable for Russia's actions in Ukraine, mirroring previous sanctions aimed at isolating Moscow more broadly.

(With inputs from agencies.)