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‘Sanctioned companies do not violate Indian law,’ says MEA after US imposes sanctions on 19 Indian companies

Posted on by Gerres
‘Sanctioned companies do not violate Indian law,’ says MEA after US imposes sanctions on 19 Indian companies

The Ministry of Foreign Affairs reacted to the latter on Saturday US. sanctions imposed on several Indian companies and citizens, with the Ministry of External Affairs (MEA) spokesperson stating that the Indian companies had not violated any domestic law.

The sanctions announced by the US Department of State target 19 Indian companies and two individuals accused of allegedly providing Russia with materials and technology to support its military during the ongoing war in Ukraine.

Randhir Jaiswal, MEA spokesman, said: “We have seen reports on US sanctions. India has a solid legal and regulatory framework for strategic trade control and non-proliferation. We are also a member of three key multilateral non-proliferation export control regimes – the Wassenaar Arrangement, the Australia Group and the Missile Technology Control Regime, and effectively implement the relevant UN Security Council sanctions and UN Security Council Resolution 1540 on non-proliferation.”

“We understand that the sanctioned transactions and companies do not violate Indian law. However, in line with India’s established non-proliferation principles, we are working with all relevant Indian departments and agencies to sensitize Indian companies on applicable export control laws, as well as inform them of the implementation of new measures that may impact Indian companies in certain circumstances “- he added.

“Agencies of the Government of India organize regular awareness events on strategic trade/export control for the Indian industry and stakeholders. We are also in contact with US authorities to clarify the matter.” Jaiswal went on to say.

Indian companies named in the sanctions, such as Shreegee Impex Private Limited, maintain that they operate in compliance with Indian law and say the sanctions will not affect their operations.

Praveen Tyagi, director of Meerut-based Shreegee Impex Private Limited, expressed confusion over the measures, stating, “I don’t know why these measures have been imposed on us. However, this will not have any impact on us as we do not import from or export to the US.”

Rahul Kumar Singh, director of TSMD Global, noted: “I don’t understand why the US has sanctioned this company. We are a supplier of automotive parts and agricultural agricultural tools. Our company does not do any business with the USA. American sanctions will be imposed, we have no influence on the company. We supply car parts, electronic components and clothing to Russian companies. We do not act against the Government of India and we do not act according to business norms. Our cooperation with Russia will continue as usual.”

Manoranjan Sharma, chief economist at Infomerics Ratings, says the moves could be an attempt to influence the US elections scheduled for November 5 in the United States.

“This is in some ways a message to the government and private sector of these countries and may put a limited strain on the US-India relationship, which has already come under some strain due to India’s alleged low profile in the case of Sikh extremist, Guru Patwan Singh Pannu, we see however, the impact of these measures on both Russia and India is limited,” said Manoranjan Sharma, chief economist at Infomerics Ratings.

“We don’t see much of an impact on India… it will have an extremely limited impact,” Sharma added.

Indian companies targeted by sanctions, including aerospace component companies, are accused of allegedly facilitating the supply of dual-use goods, i.e. products that can have both civilian and military uses.

The United States says these sanctions are part of its commitment to hold entities accountable for contributing to what it calls Russia’s “illegal war” in Ukraine. This move follows previous sanctions against Russian entities and is part of ongoing efforts to isolate Moscow economically and politically following its actions in Ukraine.