Electronic, aircraft parts: Most Indian firms on list supplied dual-use goods

Electronic, aircraft parts: Most Indian firms on list supplied dual-use goods

Sub: Eco

Sec: External sector

Context:

• Recently, the United States sanctioned 19 Indian companies and two Indian nationals for allegedly aiding Russia’s military efforts in Ukraine.
• Earlier this year, US officials had warned Indian companies about the risks of supplying dual-use goods to Russia, emphasizing the potential for sanctions.

Details:

• The sanctions primarily target suppliers of electronic components, aircraft parts, and machine tools.
• The sanctions relate to the export of dual-use goods, items that can be used for both civil and military applications to Russia.
• The items fall under the Common High Priority List (CHPL) created by the US, EU, Japan, and the UK, which includes critical components sought by Russia for its military programs.

Nature of Sanctions:

• As a result of the sanctions, US assets and companies owned by the sanctioned entities and individuals are blocked, and American entities are prohibited from transacting with them.
• Additionally, global entities that engage with the sanctioned parties may also risk facing sanctions.

Increase in India-Russia Trade:

• In 2023, India’s exports to Russia surged by 40%, exceeding $4 billion, largely driven by engineering goods, which nearly doubled to $1.32 billion in 2023 from $680 million in 2022.
• This increase aligns with Russia’s rising military expenditure, which grew by 24% in 2023, amounting to an estimated $109 billion, according to the Stockholm International Peace Research Institute (SIPRI).