India has become an important node in Russia‘s efforts to bypass Western technology sanctions by exporting sensitive technologies, including microchips and circuits.
Bloomberg reported that US and European officials who spoke under condition of anonymity said that India is now the second largest supplier of restricted critical technology to Russia.
This development comes at a time when the United States and its NATO allies are still struggling to limit Russia’s ability wage war in Ukraine. Russia has been unable to export dual-use products directly to the country, so it has turned to third-country suppliers, sometimes via unwitting subsidiaries or networks of intermediaries. Russia relies on nations like India, Serbia and China to bypass Western sanction.
Bloomberg reports that Indian exports of restricted products such as microchips and circuits have increased significantly in recent months.
Exports in April and May surpassed $60 million, almost doubling the amount in earlier months of this year. They reached $95 millions in July.
Officials said that the data shows that nearly one-fifth (or more) of the sensitive technology used by Russia’s military industrial complex now comes from India.
The situation has caused frustration among Ukraine’s allies. Some officials have noted that their attempts to discuss the issue with Indian counterparts were met with little response.
Bloomberg quotes a spokesperson as saying that the US State Department will express its concerns to Indian government officials and to Indian companies.
Bloomberg reports that although Turkiye, Malaysia and Thailand have been important transshipment hubs, they have also emerged as new hubs, including India and the United Arab Emirates.
The situation is a complex one for US and EU policymakers who are trying to build partnerships with the government of Prime Minister Narendra Modi while also addressing India’s growing relationship with Russia.
India has also become one of the largest buyers of Russian oil despite efforts by allies to restrict such sales.
In recent months, the European Union and US sanction agencies have focused more on India’s role in this shipment. In recent months, officials from these nations visited India several times to encourage the authorities to crackdown on these shipments. Some Indian firms were also subject to Western sanctions.
India’s balanced stance on the war in Ukraine
India, like China, has taken a neutral position on the Russia-Ukraine conflict, refusing to condemn Russia outright, while calling for dialogue and peace.
Narendra Modi, the Indian Prime Minister, visited Kyiv in August, just a few weeks following his visit to Russia. Modi had said that he would discuss the war before traveling to Ukraine.
India sent a representative to the Peace Summit organized by Ukraine in Switzerland, but did sign the communique supporting the three points of “the peace formula”.
The Ukrainian President Zelenskyy suggested to Indian Prime Minister Narendra modi that India host the second Peace Summit in order to resolve the Ukraine War. Zelenskyy, however, stressed that India must sign the communique of the initial summit.
India is also under pressure from Russia because artillery shells made in India are being diverted via Europe to Ukraine via countries like Italy and Czechia. India claims that it hasn’t directly sold weapons to Ukraine. However, these munitions are reaching Ukraine via third parties.
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