According to recent information, India has become the second-largest supplier of restricted critical technologies to Russia, following China. Indian exports of restricted items such as microchips, circuits, and machine tools have increased significantly, with totals of $60 million in April and May, and rising to $95 million in July. This trend has raised concerns among US and European officials as it enables President Vladimir Putin’s war efforts in Ukraine.

Despite the issue being raised by envoys from the US and other countries, Indian authorities have given little response. The Ministry of External Affairs declined to comment on the matter when asked.

The increase in exports of sensitive technology to Russia via India has reached almost 20% of the total, according to officials. This has made India a significant challenge in the US and EU’s efforts to choke off exports fueling Putin’s war machine.

Since direct exports of such dual-use items to Russia are restricted, the country has been relying on third-party countries, including India, Turkey, and the Middle Eastern nations, for these supplies. The US and EU have focused on a list of technologies crucial for Russian weapons but are now seeing new hubs emerging, including India, Malaysia, and Thailand.

The significant accumulation of rupees by Russia from oil sales with India has been cited as a key driver for this shift in India’s role as a transshipment point. Indian authorities have faced increasing pressure from European and US sanctions agencies to crack down on shipments.

Several Indian companies have already been sanctioned by the West for their connections with Russia’s military-industrial complex. US Deputy Treasury Secretary Wally Adeyemo wrote a letter to the Confederation of Indian Industry in July, warning them of potential sanctions risks for Indian businesses that continue to engage with Russia’s military base.

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