5 min readNew DelhiNov 1, 2024 08:48 AM IST
First published on: Oct 31, 2024 at 11:21 AM IST
Adding a new stress point to bilateral ties, the United States Wednesday put 19 private firms from India and two Indian nationals on a list of “nearly 400 entities and individuals” from several countries that will face sanctions for their alleged role in aiding Russia’s war efforts in Ukraine.
This is not the first time that Indian firms have been targeted by US sanctions, but the latest move was the “most concerted push so far against third-country evasion”, a US State Department official told Reuters.
The US action comes at a time when bilateral ties with India are already under stress over allegations of an Indian national’s role in a plot to assassinate Sikh separatist Gurpatwant Singh Pannun on American soil. Raising the stakes last week, the US said it would not be fully satisfied until there is “meaningful accountability” resulting from India’s investigations into the alleged plot that failed.
On Wednesday, while announcing the sanctions linked to Russia’s invasion of Ukraine, the State Department said: “The United States is today sanctioning nearly 400 entities and individuals for enabling Russia’s prosecution of its illegal war. In this action, the Department of State is imposing sanctions on more than 120 individuals and entities. Concurrently, the Department of the Treasury is designating more than 270 individuals and entities. The Department of Commerce is also adding 40 entities to its Entity List.”
It said the move aims to disrupt sanctions evasion and target entities in multiple countries, including China, Malaysia, Thailand, Turkey and the UAE, apart from India, for selling “items and other important dual-use goods to Russia, including critical components that Russia relies on for its weapons systems to wage war against Ukraine”.
“Those items include microelectronics and computer numerical control items (CNC) on the Common High Priority List (CHPL), as identified by the US Department of Commerce’s Bureau of Industry and Security (BIS) alongside the European Union (EU), United Kingdom (UK), and Japan,” it said.
“The United States will continue to use all tools at its disposal to disrupt support for Russia’s military-industrial base and curtail the Kremlin’s ability to exploit the international financial system and generate revenue in furtherance of its war against Ukraine…the Department seeks to disrupt the networks and channels through which Russia procures technology and equipment from entities in third countries to support its war effort,” it said.
The US State Department also detailed the charges against four Indian firms on its list of 120: Ascend Aviation India, Mask Trans, TSMD Global and Futrevo.
It alleged that Ascend Aviation “sent over 700 shipments to Russia-based companies between March 2023 and March 2024”, including “over $200,000 worth of CHPL items, such as US-origin aircraft components” while naming the firm’s directors.
The State Department claimed that Mask Trans was “involved in the supply of over $300,000 worth of CHPL items such as aviation components to Russia-based and US-designated S 7 Engineering LLC from June 2023 to at least April 2024”.
The other two Indian firms were among those that were designated for allegedly “operating or having operated in the technology sector of the Russian Federation economy”.
The State Department said “TSMD Global private limited is an India-based company that shipped at least $430,000 worth of CHPL items to Russia-based companies, including Electron Komponent and the US-designated companies: Limited Liability company VMK, Alfa limited liability company and joint stock company Avtovaz”.
ExplainedLimited effect
The US sanctions have had a limited impact on the Russian war machine. In this context, the latest move is being seen as an attempt to target Moscow with an eye on domestic constituents in the US with presidential elections on November 5.
It alleged that “these shipments, which occurred between July 2023 and March 2024, included US-and EU origin BIS CHPL Tier 1 and 2 items such as electronic integrated circuits, central processing units, and other fixed capacitors”.
The State Department accused Futrevo of being “involved in the supply of over $1.4 million worth of CHPL items such as electronic components to Russia-based and US-designated Limited Liability Company SMT-ILOGIC, the manufacturer of Orlan drones with Russia-based and US-designated Special Technology Center”. “The shipments were from January 2023 to at least February 2024,” it said.
The two Indian nationals sanctioned are Vivek Kumar Mishra and Sudhir Kumar, the directors of Delhi-based Ascend Aviation.
The US has targeted Indian firms earlier, too.
In November 2023, Si2 Microsystems was added to the restricted “Entities List” for supplying “US-origin integrated circuits” to the Russian military despite the transfers being banned after the Russian invasion of Ukraine, without the required licence.
In June, US Ambassador Eric Garcetti had said that any Indian company that violates global sanctions against Russia will have to be aware of the “consequences” they face when they are trying to do business with countries in Europe, and other US allies around the world.
A month later, Garcetti said that the India-US relationship was wider and deeper than it’s ever been but not deep enough to be taken “for granted”. The remarks were delivered days after Prime Minister Narendra Modi’s visit to Russia.
(L-R) Narendra Modi; an explosion after a Russian drone strike is seen in the sky over the city during a Russian missile attack, amid Russia's attack on Ukraine, in Kyiv, Ukraine (Reuters Photo); Joe Biden. 
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