India may examine the transactions made by the Indian entities that were recently sanctioned by the US for allegedly supplying Russia with dual-use goods for use in military operations against Ukraine if given some proof to establish that the exported items were covered under its SCOMET policy and were being put to military use, sources have said.
SCOMET (Special Chemicals, Organisms, Materials, Equipment and Technologies) is India’s export control policy for dual-use items that could be used for both civilian purposes as well as for military, nuclear, chemical, or biological warfare purposes.
“We would want trade to happen with all countries including Russia in the normal course without restrictions. But if they (the US government) bring to our notice that there are some goods exports to Russia that are of dual use, which are covered under SCOMET policy, and that such goods are being used for military purposes, then we will definitely examine those charges,” a source close to the development told businessline.
On October 30, the US imposed sanctions nearly 400 entities and individuals, which included 19 Indian firms and two Indian nationals, for “enabling Russia’s prosecution of its illegal war”.
The Department of State’s designations aim to disrupt sanctions evasion and target entities in multiple third countries, including the People’s Republic of China (PRC), India, Malaysia, Thailand, Türkiye, and the United Arab Emirates, per a statement from the office of the Spokesperson.
Sanctioned entities list
The Indian companies included in the sanctioned entities list include suppliers of aircraft parts, microelectronics, and machine tools.
“Much of the exports undertaken by companies could be legitimate as per Indian laws and we do not want to restrict these. But if some of the items are indeed covered under SCOMET and are being used for non-civilian purposes, we are open to examine the transactions if submitted enough proof,” the source added.
Export of items covered under SCOMET is highly regulated and is permitted only against licences issued by the government.
In an interview with businessline in June this year, US Ambassador to India Eric Garcetti had cautioned that Indian companies violating global sanctions against Russia will have to be aware of the “consequences” they face when they are trying to do business with countries in Europe, America and their global allies around the world.
“The US, together with dozens of allies, is standing up against the idea that one country by brute force should be able to take the land of another. Let me hope that India will continue to recognise that principle and work with us to identify those companies that are fueling the Russian war machine…,” Garcetti said.
Earlier this month, MEA Spokesperson Randhir Jaiswal had said that per the government’s understanding the transactions and companies were not in violation of Indian laws. “Our understanding is that the sanction, transactions, and companies are not in violation of Indian laws,” he noted.
“Nevertheless, in keeping with India’s established non-proliferation credentials, we are working with all the relevant Indian departments and agencies to sensitise Indian companies on applicable export control provisions and also inform them of new measures being implemented that could impact Indian companies in certain circumstances,” he said.