Bloomberg: India emerges as second-largest supplier of critical tech to Russia amid sanctions

India has become the second-largest supplier of restricted critical technologies to Russia, according to US and European officials, who spoke on condition of anonymity to Bloomberg. 

This development comes as the United States and its allies continue to face difficulties in limiting Russia’s ability to wage war in Ukraine. With direct exports of most dual-use items to Russia banned, the country has reportedly turned to third countries for procurement, sometimes through unwitting subsidiaries of Western firms or networks of intermediaries. Russia relies on countries like India, Serbia, and China to bypass Western sanctions.

Indian exports of restricted items such as microchips, circuits, and machine tools have seen a significant increase in recent months, Bloomberg reports. 

These exports surpassed $60 million in both April and May, approximately doubling from earlier months this year, and reached $95 million in July.

The data suggests that nearly one-fifth of the sensitive technology used in Russia’s military-industrial complex now comes through India, the officials said. 

This situation has reportedly caused frustration among Ukraine’s allies, with some officials noting that their attempts to address the issue with Indian counterparts have yielded little response.

The US State Department has indicated it will reiterate its concerns to both Indian government officials and companies, according to a spokesperson quoted by Bloomberg.

Bloomberg reports that while Türkiye and the United Arab Emirates have been significant transshipment points, new hubs have emerged, including India, Malaysia, and Thailand.

The situation presents a complex challenge for US and EU policymakers, who aim to foster partnerships with Prime Minister Narendra Modi’s government while addressing India’s growing ties with Russia. 

India has also become a major purchaser of Russian oil, despite allied efforts to restrict such sales.

India’s role in these shipments has led to increased focus from European Union and US sanctions agencies in recent months. Officials from these nations have reportedly made several visits to India in an effort to encourage authorities to crack down on these shipments, and some Indian firms have been subject to Western sanctions.

India’s balancing stance on war in Ukraine

India, similarly to China, has adopted a neutral stance on the Russia-Ukraine war, refraining from condemning Russia outright while calling for peace and dialogue.

In August, the Prime Minister of India Narendra Modi visited Kyiv, a few weeks after visiting Russia. Before traveling to Ukraine, Modi said he intended to discuss the war.

In June, India sent its representative to the Peace Summit in Switzerland organized by Ukraine, but did not sign the communique on support for the three points of the “peace formula”.

Ukrainian President Zelenskyy proposed to Indian Prime Minister Narendra Modi that India host a second Peace Summit aimed at resolving the Ukraine war. However, Zelenskyy emphasized that India must first sign the communiqué from the initial summit.

India is also facing pressure from Russia due to Indian-made artillery shells being diverted to Ukraine via European countries like Italy and Czechia. Although India maintains that it hasn’t sold weapons directly to Ukraine, these munitions have been reaching Ukraine through third parties.

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