US cracks down on Indian companies for supplying Russian companies

Washington:

The United States imposed sanctions on hundreds of targets on Wednesday in new action against Russia, a signal that the US will continue to clamp down on evasion of measures imposed following Moscow’s invasion of Ukraine. The action, taken by the U.S. Treasury and State Departments, imposed sanctions on nearly 400 entities and individuals from more than a dozen different countries, according to statements from the ministries.

The move was the most concerted action yet against third-country evasion, a State Department official told Reuters. It included sanctions on dozens of Chinese, Hong Kong and Indian companies, most from the countries hit in one package so far, the official said.

Targets in Russia, the United Arab Emirates, Turkey, Thailand, Malaysia, Switzerland and elsewhere were also hit by sanctions.

The move comes as Washington has sought to curb Russia’s evasion of sanctions imposed after its 2022 invasion of Ukraine, which left thousands dead or injured and cities in ruins.

“This should send a serious message to both the governments and private sectors of these countries that the U.S. government is committed to opposing the evasion of our sanctions against Russia and to continuing to pressure Russia to end its war in Ukraine.” , the US government said. official, speaking on condition of anonymity.

The U.S. Treasury Department has imposed sanctions on 274 targets, while the State Department has designated more than 120 and the Commerce Department has added 40 companies and research institutions to a list of trade restrictions for their alleged support of the Russian military.

“The United States and our allies will continue to take decisive action around the world to stem the flow of critical tools and technologies that Russia needs to wage its illegal and immoral war against Ukraine,” said Deputy Treasury Secretary Wally Adeyemo in the statement.

Chinese embassy spokesman in Washington Liu Pengyu said Beijing firmly opposes “illegal and unjustifiable unilateral sanctions.”

“The US is making false accusations against China’s normal trade with Russia while continuing to provide unprecedented military aid to Ukraine. This is a typical double standard, and extremely hypocritical and irresponsible,” Liu said.

The Russian and Indian embassies in Washington did not immediately respond to requests for comment. The Turkish government did not immediately respond to a request for comment.

The US has repeatedly warned against supplying Russia with high-priority common items: advanced components, including microelectronics, likely to be used by the US and European Union for Russia’s war in Ukraine.

The foreign ministry official said there has been an increase in exports of such goods from India to Russia, as well as increased interest in taking action against the companies facilitating such activities.

A senior administration official said Wednesday’s action was intended to signal that the US would take action against Indian companies if no progress is made through communications.

“With India, we’ve been very direct and blunt with them about the concerns that we have about what we see as sort of emerging trends in that country that we want to stop before they get too far,” the official said. on condition of anonymity.

India-based Futrevo was among the companies targeted by the State Department, which accused it of being involved in the supply of high-priority items to the Russia-based Orlan drone manufacturer.

The Treasury Department also targeted Shreya Life Sciences Private Limited, which it said has sent hundreds of shipments of U.S. technology to Russia since 2023, totaling tens of millions of dollars.

CHINA

A second senior State Department official told Reuters in an interview on Tuesday that more than 70% of high-priority goods going to Russia came from China, with an estimated value of more than $22 billion since the start of the war.

“That is more than 13 times the second largest supplier,” said the official, who was Turkey at the end of 2023.

Among those targeted Wednesday were Hong Kong- and China-based companies involved in shipping tens of millions of dollars worth of high-priority items to Russia-based companies or end users, the State and Treasury ministries said.

The US also took action against several entities supporting Russia’s Arctic LNG 2 project, which is 60% owned by Russia’s Novatek and would become Russia’s largest liquefied natural gas plant. Novatek has been forced to scale back Arctic LNG 2, which was planned to reach final production of 19.8 million tonnes per year, following a series of US sanctions that began in 2023, with additional measures in August and September.

But the U.S. has been reluctant to use an executive order signed by President Joe Biden last year that threatened sanctions on financial institutions that help Russia evade sanctions. The senior government official said the banking industry had taken note of the authority and taken steps towards compliance.

(Except for the headline, this story has not been edited by NDTV staff and is published from a syndicated feed.)