Any Indian company that violates global sanctions against Russia will have to be aware of the \u201cconsequences\u201d they face when they are trying to do business with countries in Europe, America and their global allies around the world, US Ambassador to India Eric Garcetti has said.<\/p>\n
\u201cThe US, together with dozens of allies, is standing up against the idea that one country by brute force should be able to take the land of another. Let me hope that India will continue to recognise that principle and work with us to identify those companies that are fueling the Russian war machine\u2026,\u201d Garcetti said in a video interview with businessline<\/i>.<\/p>\n Garcetti\u2019s statement gains added relevance as earlier this month, Japan announced sanctions against Bengaluru-based Si2 Microsystems, which designs and manufactures electronics equipment, for \u201chelping Russia evade\u201d punitive measures related to its invasion of Ukraine. The same company was sanctioned by the European Union in February this year and the US last November for allegedly supporting Russia\u2019s military and defence industrial base.<\/p>\n Interestingly, just a month before the US sanctions on Si2 Microsystems, it was named by the Ministry of Electronics and Information Technology as one of the industry partners at the launch of Silicon Photonics Research Centre of Excellence at IIT Madras.<\/p>\n Garcetti said there was no problem with India\u2019s energy trade with Russia as no one had the impression that India was breaking some sort of rules. Many countries together had decided on a price cap for Russian oil that would limit Moscow\u2019s earnings and India was taking care of its enforcement. \u201cOil is an important commodity that the US does not want to restrict as it would make everybody\u2019s cost go up,\u201d he said.<\/p>\n \u201cThat said, I don\u2019t think I have to remind my Indian friends that the most sacred and sacrosanct thing that we have in our international relations are our borders\u2026We need to work together to make sure the Russian war machine does not continue to go on for ever,\u201d Garcetti added.<\/p>\n To check flow of funds and arms to Russia, the US reportedly sanctioned over 4,000 Russian businesses and individuals since the country invaded Ukraine in February 2022. <\/p>\n The fear of third country sanctions is one of the factors behind Indian exports to Russia not reaching its full potential despite the two governments putting in place a rupee payment mechanism. \u201cIndian exporters of network products that are part of a global value chain, such as computers, electronics and telecom equipment are not keen on exporting to Russia as they fear sanctions against them in Western countries that would affect their business,\u201d an official explained.<\/p>\n While India\u2019s exports to Russia increased 35 per cent (year-on-year) in 2023-24 to $4.26 billion its imports were much higher at $61.43 billion (growing 33 per cent) with oil imports at $54.5 billion.<\/p>\n\n
\nPunitive measures
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\nFear factor
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