The sanctions, led by the US Treasury and State Departments, target what they describe as "third-country enablers," accusing them of aiding the Kremlin and helping Russia evade the West's sanctions imposed since its war on Ukraine began in 2022.
"As evidenced by today's action, we are unyielding in our resolve to diminish and degrade Russia's ability to equip its war machine and stop those seeking to aid their efforts through circumvention or evasion of our sanctions and export controls," Adeyemo said.
The sanctions aim to disrupt Russia's ability to procure key technologies and components from third-party countries. The targeted goods include microelectronics and CNC (computer numerical control) items, which the Department of Commerce has classified as high-priority.
Countries including China, India, Kazakhstan, Turkey, and the UAE have been identified as suppliers of these critical dual-use goods that Russia uses to maintain and enhance its weapon systems.
The US Treasury voiced concerns over China's ongoing export of dual-use goods to Russia, noting that China-based entities have supplied Moscow with essential components, helping it produce weapons and strengthen its defence production.
In response, several Chinese companies that produce and export CNC items essential for Russia’s military industry have been designated under the new sanctions. These sanctions seek to curb China's role in supplying Russia’s war machinery through backchannels and sanctions-evasion networks.
The Department emphasised that cutting off these networks is key to undermining Russia's defense capabilities as the war continues.
Minister of External Affairs spokesperson Randhir Jaiswal commented on the US sanctions against 19 Indian companies, stating that New Delhi is aware of these reports and emphasises its strong legal and regulatory framework for strategic trade and non-proliferation controls.
"We have seen these reports of US sanctions. India has a robust legal and regulatory framework on strategic trade and non-proliferation controls. We are also a member of three key multilateral non-proliferation export control regimes - the Vasinar Arrangement, the Australia Group and the Missile Technology Control Regime, and have been effectively implementing relevant UNSC sanctions and UNSC Resolution 1540 on non-proliferation," he said.
Jaiswal also said that these sanctions do not appear to involve violations of Indian law by the companies in question.
"Our understanding is that the sanction, 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 sensitize 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 added.
The United States imposed sanctions on 398 firms, including four from India, accusing them of providing products and services that support Russia’s war efforts and help it evade sanctions.
The sanctions, led by the US Treasury and State Departments, target what they describe as "third-country enablers," accusing them of aiding the Kremlin and helping Russia evade the West's sanctions imposed since its war on Ukraine began in 2022.
Firms from Russia, India, China, Turkey, and Switzerland were among those from over a dozen countries hit by the latest US sanctions in its attempts to further isolate Moscow.
Among those sanctioned by the Treasury Department are 274 companies accused of supplying Russia with advanced technology, as well as Russia-based defence and manufacturing firms that produce or finish military products that maintain the weaponry used against Ukraine.
Four Indian firms—Ascend Aviation India Pvt. Ltd., Futrevo, Shreya Life Sciences Pvt. Ltd., and Mask Trans—were hit with US economic sanctions. The sanctions, as reported by Bloomberg and Reuters, were imposed after allegations that these firms have aided Russia’s military activities in different capacities.
A State Department official told Reuters that there has been a rise in exports of such goods from India to Russia, along with growing interest in taking action against companies facilitating this activity.
“With India, we have been very direct and blunt with them about the concerns we have about what we see as sort of emerging trends in that country that we want to stop before they get too far down the road,” the official told Reuters, speaking on condition of anonymity.
The US State Department accused Futrevo of supplying high-priority items to a Russian manufacturer of Orlan drones, while Shreya Life Sciences is alleged to have sent US-trademarked technology to Russia, totalling millions of dollars in value since 2023.
Additionally, Ascend Aviation reportedly made over 700 shipments to Russian firms within a year, while Mask Trans allegedly supplied aviation components worth over $300,000 to a Russian engineering firm tied to the military sector.
This isn’t the first time Indian firms have faced US sanctions, as India has emerged as a new transit hub for Russia to import critical goods and technologies, including microchips, machine tools, and advanced electronics, following restrictions on the flow of such items through the UAE and other countries.
Earlier in October, India became the second-largest supplier of restricted critical technologies to Russia, second only to China.
Meanwhile, the State Department imposed diplomatic sanctions on several senior Russian Ministry of Defence officials and defence companies, a group of China-based companies that export dual-use goods that fill critical gaps in Russia's military-industrial base, and entities and individuals in Belarus related to the Lukashenka regime's support for Russia's defence industry.
Treasury's Deputy Secretary Wally Adeyemo said the US and its allies "are unyielding in our resolve to diminish and degrade Russia's ability to equip its war machine and stop those seeking to aid their efforts through circumvention or evasion of our sanctions and export controls."
Wednesday's action is the latest in a series of thousands of US sanctions that have been imposed on Russian firms and their suppliers in other nations since Russia's invasion of Ukraine.
The effectiveness of the sanctions has been questioned, especially as Russia has continued to support its economy by selling oil and gas on international markets.
The Biden administration acknowledges that sanctions alone cannot stop Russia's war on Ukraine. And many policy experts say the sanctions are not strong enough, as evidenced by the growth of the Russian economy.
A senior Treasury official told reporters on a call to preview the Wednesday sanctions that deepening ties between Russia and North Korea are a sign of Russia's desperation to find support during the war.
North Korea said Tuesday its top diplomat is visiting Russia, as rival South Korea and Western nations say the North has sent thousands of troops to support Russia's war effort.
Earlier this year, the US passed an aid package for Ukraine that allows the administration to seize Russian state assets located in the US and use them for the benefit of Kyiv.
Shortly thereafter, the leaders of the Group of Seven wealthy democracies agreed to engineer a $50 billion loan to help Ukraine in its fight for survival.
Interest earned on profits from Russia's $300 billion in frozen central bank assets, mostly in Europe, would be used as collateral.
