Why the US imposed sanctions on Indian companies
Last Updated on November 4, 2024 5:45 am
Most of the products that Indian companies have been exporting to Russia in the war against Ukraine are dual-use. These products can be used in civilian services as well as military use. Most of these products and technologies are electronic. The remaining exports include parts for fighter jets and other equipment that are used to repair weapons.
On Wednesday, the US imposed sanctions on more than four hundred companies from different countries. Among them, there are 19 Indian companies. The US alleges that these companies are supplying Russia with products that are useful in both war and peacetime. Allegedly, these dual-use products are being used by Russia in the war with Ukraine.
For this reason, it is not that the US has not warned any Indian company before. Sanctions were also imposed against some. But this time, bringing 19 companies under sanctions at once is considered an unusual increase.
As a result of this ban, Indian companies will not be able to use the companies that are owned by the United States or have the right to use the assets of that country in any way. That is, they will temporarily lose the rights to their assets in the United States. They will not be able to do any transactions with them. No one outside the United States will be able to do any business with that company.
The United States has also imposed sanctions on two directors of Delhi-based company Ascend Aviation. They are Vivek Kumar Mishra and Sudhir Kumar.
The US presidential election is four days away. Just before that, India has not yet commented on this ban. ‘The Indian Express’ reported that they had sent several questions about this US decision to the Indian Ministry of Industry and Commerce. But they did not respond.
The question of dual use was also raised in various quarters during the signing of the US civil nuclear agreement with the government of Prime Minister Manmohan Singh. The agreement was signed only after India rejected those concerns.
After the start of the Ukraine war, the United States imposed sanctions on Russia in various areas. But India is avoiding them and is importing petroleum products from that country. The United States believes that in this way India is helping Russia economically.
Apart from oil imports, India’s exports to Russia also increased by 40 percent in 2023. Exports increased by $4 billion in one leap. Most of these exports are engineering products, which are believed to be the reason for increased investment in the country’s defense industry.
The US alleges that the companies brought under sanctions produce ‘Common High Priority List’ (CHPL) products. These products can be used in both civilian and military sectors. Russia has been importing these products from various countries to maintain its arsenal in case of war.