Indian firms targeted in US sanctions amid fresh crackdown on Russia

Washington: The United States on Wednesday imposed curbs on hundreds of targets in fresh action against Russia, taking aim at sanctions circumvention in a signal that the US is committed to countering evasion.

The action, taken by the US Treasury and State departments, imposed sanctions on nearly 400 entities and individuals from over a dozen different countries, according to statements from the Treasury and State departments.

The action was the most concerted push so far against third country evasion, a State Department official told Reuters. It included sanctions on dozens of Chinese, Hong Kong and Indian companies, the most from those countries to be hit in one package so far, according to the official.

Also hit with sanctions were targets in Russia, the United Arab Emirates, Turkey, Thailand, Malaysia, Switzerland and elsewhere.

The action comes as Washington has sought to curb Russia's evasion of the sanctions imposed after its 2022 invasion of Ukraine, which has killed or wounded thousands and reduced cities to rubble.

The US has repeatedly warned against supplying Russia with Common High Priority Items - advanced components including microelectronics deemed by the US and European Union as likely to be used for Russia's war in Ukraine.

"This should send a serious message to both the governments and the private sectors of these countries that the US government is committed to countering the evasion of our sanctions against Russia and to continue putting pressure on Russia to end its war in Ukraine," the official, speaking on condition of anonymity, said.

The US Treasury Department imposed sanctions on 274 targets, while the State Department designated more than 120 and the Commerce Department added 40 companies and research institutions to a trade restriction list over their alleged support of the Russian military.

"The United States and our allies will continue to take decisive action across the globe to stop the flow of critical tools and technologies that Russia needs to wage its illegal and immoral war against Ukraine," Deputy Treasury Secretary Wally Adeyemo said in the statement.

A senior administration official said Wednesday's action was designed to signal the US would take action against Indian companies if progress is not made through communication.

“With India, we have been very direct and blunt with them about the concerns we have about what we see as sort of emerging trends in that country that we want to stop before they get too far down the road,” the official, speaking on condition of anonymity, said.

India-based Futrevo was among the companies targeted by the State Department, which accused it of being involved in the supply of high-priority items to the Russia-based manufacturer of Orlan drones.

The Treasury also targeted Shreya Life Sciences Private Limited, which it said since 2023 has sent hundreds of shipments of U.S.-trademarked technology to Russia, totaling tens of millions of dollars.

China

A second senior State Department official told Reuters in an interview on Tuesday that more than 70 per cent of the high-priority goods getting to Russia was from China, more than an estimated $22 billion worth since the start of the war.

"That's over 13 times the next largest supplier," the official said, which as of the end of 2023 was Turkey.

Among those targeted Wednesday were Hong Kong and China-based companies involved in the shipment of tens of millions of dollars worth of high-priority items to Russia-based companies or end-users, the State and Treasury departments said.

The US also took actions on a variety of entities supporting Russia's Arctic LNG 2 project, which is 60 per cent owned by Russia's Novatek, and was to become Russia's largest liquefied natural gas plant.

Novatek has been forced to scale back Arctic LNG 2, which had been planned to reach an eventual output of 19.8 million metric tons per year, following a raft of US sanctions starting in 2023 with additional measures in August and September.

But the US held back from using an executive order signed by President Joe Biden last year that threatened penalties for financial institutions that help Russia circumvent sanctions. The senior administration official said banking sectors had taken notice of the authority and sort of moved into compliance.