US government officials are “sensitising” Indian firms amd exporters to stop them from exporting dual-use defence items and technology to Russia that could be used in missiles and other defence equipment, the Indian Express reported on August 20.
The exports could lead to western sanctions, the report said.
Dual-use items include electronic components, drones, software and machine tools. These products can be used for both civil and military purposes.
Monyecontrol couldn’t verify the report independently.
Earlier last year, Bengaluru-based Si2 Microsystems was sanctioned for allegedly supplying dual-use technology to Russia.
The US treasury officials have also warned Indian banks against having business ties with Russian firms or institution as they could risk losing access to the American financial system, Reuters reported in July.
In May, Livemint had reported that Russian firms have utilised from their rupee vostro accounts to buy Indian-made arms and various other things over the past six to eight months.
The rupee vostro accounts keep a foreign entity's holdings in an Indian bank rupees.
Russia was among the 22 countries that were allowed to open special rupee vostro accounts (SRVAs) with Indian lenders to trade in local currency.
In 2023, India's total exports to Russia jumped 40 percent to over $4 billion, mainly driven by engineering goods.
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