India Becomes Second-Largest Supplier Of Critical Tech To Russia Amid Ukraine War: Report

India has reportedly emerged as the second-largest supplier of restricted critical technologies to Russia amid Moscow's ongoing conflict with Ukraine.

India’s exports of restricted technologies, including microchips, circuits, and machine tools, crossed $60 million in April and May, doubling from previous months, and spiked to $95 million by July, according to US and European officials cited in a Bloomberg report.

Only China has exported more to Russia in these categories.

Allies of Ukraine have reportedly said that their diplomats have received little response from Indian officials on the matter.

Recent data indicates that nearly 20 per cent of the sensitive technology reaching Russia’s military-industrial sector has been supplied through India, according to the officials.

The latest figures highlight the challenges the US and its allies have encountered in restricting Russia's ability to sustain its war effort in Ukraine, more than two years after the invasion began.

With direct exports of many dual-use technologies to Russia prohibited, Moscow has turned to acquiring these items through third-party nations, often utilising intermediaries or subsidiaries of Western firms unaware of the ultimate destination.

A US State Department spokesperson said on Friday that the department will raise concerns again with Indian government representatives and local businesses over this issue.

Both the US and the European Union have concentrated their efforts on curbing technologies that are either used in Russian weaponry or are essential for their production.

While attempts to block these supply routes have focused on Turkey and the UAE as major transshipment points, new hubs, including India, Malaysia, and Thailand, have reportedly surfaced.

India’s involvement in these shipments complicates matters further, as US and EU policymakers aim to strengthen ties with Prime Minister Narendra Modi’s government, despite his close relations with Putin.

India has also become one of the largest purchasers of Russian oil, defying efforts by Western allies to limit such sales.

Officials have attributed this shift to Russia’s large reserve of rupees, accumulated from oil transactions with India.

India’s growing role as a transshipment hub has drawn the attention of EU and US sanctions authorities in recent months.

Delegations from these countries have made multiple visits in an attempt to persuade Indian authorities to curb these shipments. Several Indian firms have also faced Western sanctions.

In July, US Deputy Treasury Secretary Wally Adeyemo wrote a letter to senior officials at the Confederation of Indian Industry, cautioning them about the sanctions risks for Indian companies and banks linked to Russia’s military-industrial sector.

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