Dual-use goods: US alerts Indian companies on export of defence tech to Russia

• US alerts Indian companies on export of defence tech to Russia.

Highlights:

• US government officials are sensitising Indian companies and exporters to deter them from supplying Russia with items and technology that could end up being used in Russian missiles and other defence equipment, which would attract Western sanctions.
• This follows reports of sanctions on Bengaluru-based Si2 Microsystems in November last year for its alleged role in supplying dual-use technology to Russia.
• Moreover, a US Treasury official had also warned India’s banks that financial institutions that do business with Russia’s military industrial base risk losing access to the US financial system.
• Ministry of Commerce and Industry in January 2024 had said that the government is working to liberalise export norms for certain products with dual-use applications.
• However, the official clarified that the items identified by the US are not Special Chemicals, Organisms, Materials, Equipment and Technologies (SCOMET) items.

Prelims takeaway:

• India - Russia relation