Amid the ongoing Ukraine war, US authorities have stepped up engagement with Indian companies exporting goods to Russia. According to government sources who spoke to this publication, US officials are advising firms on restrictions surrounding certain “dual-use” technologies and components.
Dual-use refers to items that have commercial as well as potential military applications. These include electronics, machinery, software and other technologies. While not bound by Western sanctions, India has seen exports to Russia rise in recent months. However, American interlocutors are making businesses more aware of products prohibited for defence end-uses.
Last year, a Bengaluru startup was sanctioned by the US for allegedly supplying such technology to Russia. Indian banks have also been privately warned against facilitating sensitive trades. Meanwhile, overall exports jumped 40% in 2023, led by engineering goods, organic chemicals and pharmaceuticals.
As Washington tracks Russian procurement amid heightened military spending, it is focussed on ensuring certain items do not enable the country’s weapons programs. Indian authorities maintain such exports are not of the most restricted “SCOMET” category. Still, US engagement aims to prudently manage business cooperation amid geopolitical tensions. Firms would do well to conduct due diligence given the sensitivity.
