EU shares evidence of Indian entities breaching G7 sanctions

The European Union has shared evidence with the Indian government about Indian entities violating G7and EU sanctions on Russia. The evidence was shared during the EU Sanctions Envoy's visit to India earlier this year, with Brussels hoping that India will take action against the entities given that India has the 'means'. Delhi has sought more information on the evidence provided.

David O’Sullivan, EU Sanctions Envoy, said, "I travelled to India in October 2024 for the second time to discuss with Indian authorities systemic solutions to stop the illicit flow of Common High Priority items to Russia. Several third countries I visited have put in place specific mechanisms to solve this issue."

He explained, "Russia’s brutal and illegal invasion of Ukraine is existential for the EU. We will continue to disrupt the activities of the Russian military-industrial complex by shutting down illicit procurement networks on a constant basis.”

It is learnt that the EU is currently negotiating its 15th package of sanctions against Russia. This package will consist of listings of vessels part of the Shadow Fleet and entities that have been supplying ‘battlefield items’ to Russia.

EU sources said, “Two entities based in India are subject to specific export restrictions: Si2 Microsystems Pvt Ltd and Innovio Ventures. The EU will continue to work with Indian authorities to find a systemic solution to stop sanctions circumvention of Common High Priority goods to Russia.”

Sources pointed out, "These items are used to make Russian military equipment more precise and therefore more lethal. The EU already listed hundreds of entities part of the Russian military-industrial complex as well as actors based in third countries that have been actively undermining the EU sanctions framework."

The G7 and EU imposed sanctions on Russia in the aftermath of the Russia-Ukraine war that started in 2022. The sanctions are aimed at degrading Moscow's capacity by restricting access to technologies, industrial inputs, and financial systems. These sanctions include freezing assets, banning certain exports, and prohibiting imports like diamonds, metals, and oil products, targeting Russia's economic sectors critical to its military operations.

India's official stance is that it doesn't follow G7and EU sanctions and opposes any unilateral sanctions that haven't been approved by the UN, but the EU hopes that action can be taken by Delhi on the entities ahead of the India-EU summit next year. Delhi shares close and historic ties with Moscow and sees Russia as an important partner in its quest for natural resources and Make in India defence policy.

Since the 2022 war, Russia has increased its engagement with Asian giants like China and India, who in turn have increased imports of Russian energy, like crude oil. Since the war, India has increased the import of Russian crude oil, and the trade between the two countries stands at USD 65.4 billion for the financial year 2023-24 with a growth rate of 32.5% year on year.

Earlier this year, the United States had imposed sanctions on several Indian entities for their alleged support to Russia's military-industrial base. India has underscored that its legal and regulatory frameworks on trade and non-proliferation are robust, and these actions by Indian entities do not violate Indian laws.

The Ministry of External Affairs spokesperson Randhir Jaiswal had said, "Our understanding is that the sanctioned transactions and companies are not in violation of Indian laws. 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."