India Becomes Second-Largest Supplier Of Critical Technologies To Russia, Faces Western Concerns: Report

India has become the second-largest supplier of sensitive technologies to Russia, providing over $60 million in restricted items like microchips and machine tools, a report says.

India has emerged as the second-largest supplier of restricted critical technologies to Russia, according to a Bloomberg report citing unnamed US and European officials. The report indicates that India's exports of restricted items, including microchips, circuits, and machine tools, exceeded $60 million in April and May, doubling from earlier months this year, and surged to $95 million in July.

India's exports are surpassed only by those from China, making it a key player in the supply of sensitive technologies to Russia's military-industrial complex. "Almost a fifth of the sensitive technology that goes into Russia’s military-industrial complex got there via India," the officials told Bloomberg, speaking on condition of anonymity. The US and European Union have primarily focused their restrictions on technologies found in Russian weaponry or those critical to manufacturing them.

Some officials expressed concerns that when this issue was raised with Indian counterparts, the response was limited. The Ministry of External Affairs in India declined to comment when questioned about the export trend, as per the Bloomberg report.

A State Department spokesperson highlighted that the department plans to reiterate its growing concerns to Indian officials and companies, especially regarding these shipments to Russia. Efforts to curb these exports have shifted from other transshipment points, such as Turkey and the United Arab Emirates, to include new hubs like India, Malaysia, and Thailand, according to sources cited by the report.

European Union, US Sanctions Agencies Focus On India’s Role In Exports To Russia

India's involvement as a transshipment point has drawn significant attention from the European Union and US sanctions agencies recently. Western officials have made several visits to India to encourage authorities to intensify scrutiny of such shipments. Several Indian companies have already faced sanctions from Western nations.

A major factor behind India’s role in these exports is the large stock of rupees Russia has accumulated from the sale of oil to India, the officials said, as per the report. This dynamic has complicated the situation, as the US and EU seek to maintain strong ties with Prime Minister Narendra Modi's government amid strong India-Russia ties.

In July, US Deputy Treasury Secretary Wally Adeyemo addressed the risks associated with these transactions. He wrote a letter to senior officials at the Confederation of Indian Industry, warning of potential sanctions risks for Indian companies and banks that engage with Russia’s military-industrial sector, as reported by Bloomberg.