India is now Russia’s no. 2 supplier of restricted technology

India has surged to become the second-biggest supplier of restricted critical technologies to Russia, US and European officials said, highlighting the challenge in efforts to choke off exports fueling President Vladimir Putin’s war machine.

Bloomberg
Published12 Oct 2024, 10:42 AM IST
India is now Russia’s no. 2 supplier of restricted technology
India is now Russia’s no. 2 supplier of restricted technology(AFP)

India has surged to become the second-biggest supplier of restricted critical technologies to Russia, US and European officials said, highlighting the challenge in efforts to choke off exports fueling President Vladimir Putin’s war machine.

Indian exports of restricted items such as microchips, circuits and machine tools surpassed $60 million in both April and May, about double from earlier months this year, and leaped to $95 million in July, according to the officials, who asked not to be identified discussing private assessments. India is exceeded only by China.

Even more frustrating to Ukraine’s allies, some of them said, is that envoys who raise the issue have received little response from their Indian counterparts. India’s Ministry of External Affairs declined to comment when asked about the trend.

The most recent data means almost a fifth of the sensitive technology that goes into Russia’s military-industrial complex got there via India, the officials said.

Also Read | US Believes That Ukraine Can Hold Russian Territory for Months

The fresh data underscores the difficulty the US and its allies have faced in crimping Russia’s ability to fight in Ukraine two and a half years since Putin’s forces invaded. Exports of most such dual-use items directly to Russia are banned, so the country has taken to buying them from third countries — sometimes from unwitting subsidiaries of western firms or networks of intermediaries.

A State Department spokesperson said Friday that the department would reiterate rising concerns with Indian government officials as well as companies.

Also Read | Multibagger penny stock to consider bonus shares, stock split. Rises 140% in YTD

The US and European Union have focused most of their efforts on a list of technologies found in Russian weapons or are needed to build them.

As allies work to curb some of these routes — Turkey and the United Arab Emirates have been two big transshipment points — new hubs have emerged. They include India, Malaysia and Thailand, according to the people.

India’s role in the the shipment of such goods has presented a further challenge because US and EU policymakers want to nurture partnerships with Prime Minister Narendra Modi’s government even as he cultivates ties with Putin. India has also emerged as a top buyer of Russian oil despite allied efforts to restrict sales.

Also Read | Meta removes fake accounts in Moldova ahead of presidential election

A key driver of the shift is the vast stock of rupees Russia has accumulated from such oil sales, according to the officials.

India’s role as a transshipment point has made it a focus for European Union and US sanctions agencies in recent months. Officials from those nations have visited several times in efforts to get authorities to crack down on shipments, and several Indian firms have come under western sanctions.

Also Read | US Believes That Ukraine Can Hold Russian Territory for Months

In July, US Deputy Treasury Secretary Wally Adeyemo wrote a letter to senior officials at the Confederation of Indian Industry warning of the sanctions risks faced by Indian companies and banks that do business with Russia’s military industrial base, according to a copy of the letter obtained by Bloomberg News.

Catch all the Business News , Economy news , Breaking News Events andLatest News Updates on Live Mint. Download TheMint News App to get Daily Market Updates.

MoreLess
First Published:12 Oct 2024, 10:42 AM IST
Business NewsEconomyIndia is now Russia’s no. 2 supplier of restricted technology

Get Instant Loan up to ₹10 Lakh!

  • Employment Type

    Most Active Stocks

    Tata Steel share price

    147.55
    03:59 PM | 8 NOV 2024
    -3.35 (-2.22%)

    Tata Motors share price

    805.70
    03:58 PM | 8 NOV 2024
    -14.1 (-1.72%)

    Indian Hotels Company share price

    733.05
    03:51 PM | 8 NOV 2024
    49.45 (7.23%)

    Ashok Leyland share price

    222.00
    03:59 PM | 8 NOV 2024
    6.2 (2.87%)
    More Active Stocks

    Market Snapshot

    • Top Gainers
    • Top Losers
    • 52 Week High

    Aarti Industries share price

    474.75
    03:59 PM | 8 NOV 2024
    -40.3 (-7.82%)

    Signatureglobal India share price

    1,274.45
    03:29 PM | 8 NOV 2024
    -107.95 (-7.81%)

    Great Eastern Shipping Company share price

    1,200.50
    03:29 PM | 8 NOV 2024
    -90.45 (-7.01%)

    GMM Pfaudler share price

    1,282.90
    03:29 PM | 8 NOV 2024
    -92 (-6.69%)
    More from Top Losers

    Indian Hotels Company share price

    733.05
    03:51 PM | 8 NOV 2024
    49.45 (7.23%)

    Vijaya Diagnostic Centre share price

    1,098.90
    03:29 PM | 8 NOV 2024
    71.45 (6.95%)

    Motilal Oswal Financial Services share price

    996.05
    03:59 PM | 8 NOV 2024
    61.85 (6.62%)

    One 97 Communications share price

    848.15
    03:58 PM | 8 NOV 2024
    52.35 (6.58%)
    More from Top Gainers

    Recommended For You

      More Recommendations

      Gold Prices

      • 24K
      • 22K
      Bangalore
      79,375.00-110.00
      Chennai
      79,381.00-110.00
      Delhi
      79,533.00-110.00
      Kolkata
      79,385.00-110.00

      Fuel Price

      • Petrol
      • Diesel
      Bangalore
      102.92/L0.00
      Chennai
      100.80/L0.00
      Kolkata
      104.95/L0.00
      New Delhi
      94.77/L0.00

      Popular in Economy

        HomeMarketsPremiumInstant LoanMint Shorts