India's growing role in supplying sensitive tech to Russia
According to Bloomberg reports, India has taken second place in the ranking of suppliers of sanctioned technologies to Russia, with China holding the top spot.
The export of controlled technologies, such as microchips, has significantly increased in India. In April and May, the value of such exports exceeded 60 million USD (83 million CAD), nearly doubling compared to the previous months of this year. By July, this value rose to 95 million USD (130 million CAD). India ranks only behind China in terms of supply volume.
Significant involvement in the Russian military industry
Data shows that nearly 20% of the sensitive technology used in the Russian military industry reached there through India, according to Bloomberg's sources.
India, Malaysia, and Thailand have joined the group of countries like Turkey and the United Arab Emirates, which have long served as transshipment hubs for goods sent to Russia.
“India’s role in the the shipment of such goods has presented a further challenge because US and EU policymakers want to nurture partnerships with Prime Minister Narendra Modi’s government even as he cultivates ties with Putin. India has also emerged as a top buyer of Russian oil despite allied efforts to restrict sales,” wrote Bloomberg.
Key economic factors
According to officials, a crucial factor in this change is the significant reserves of Indian currency that Russia accumulated due to oil sales.
In July, U.S. Deputy Secretary of the Treasury Wally Adeyemo sent a letter to the Confederation of Indian Industry, warning Indian companies and banks about the risk of sanctions due to their cooperation with the Russian defence sector, according to a copy of the letter obtained by Bloomberg.
As a reminder, according to unofficial information, India was reportedly helping Russia circumvent sanctions, including those concerning sensitive goods.
