NEW DELHI – India has emerged as the second-largest supplier of restricted critical technologies to Russia, behind only China, according to US and European officials. The surge in Indian exports of items like microchips, circuits, and machine tools – technologies that can support Russia’s military-industrial complex – reached nearly US$95 million in July 2024, double the amount seen earlier in the year.
These sensitive exports have become a significant concern for Ukraine’s allies, who have attempted to choke off supplies feeding Russia’s war efforts. Despite repeated diplomatic efforts, officials say Indian authorities have offered little response to concerns raised about these exports.
India’s rise as a key supplier of these restricted technologies comes at a time when the US and EU are focused on limiting Russia’s access to technologies used in weapons production. However, as traditional routes like Turkey and the UAE are restricted, new transshipment hubs have appeared, including India, Malaysia, and Thailand.
This trend presents a complex challenge for Western governments, as they aim to curb these exports while maintaining and nurturing strategic partnerships with Prime Minister Narendra Modi’s government. India’s position is further complicated by its substantial purchases of Russian oil, contributing to Russia’s rupee stockpile, which is helping fuel these transactions.
Efforts by the US and EU have included sanctions on several Indian firms and warnings from officials like US Deputy Treasury Secretary Wally Adeyemo about the risks Indian companies face by doing business with Russia’s military sector. Despite these efforts, India remains a key player in supplying restricted technologies to Russia, complicating the broader geopolitical landscape.