MEA asserts compliance with global trade laws

New Delhi, Nov 2: India has formally responded to recent U.S. sanctions imposed on 19 Indian private entities and two nationals for allegedly supporting Russia’s military-industrial base amid the ongoing Ukraine conflict. Addressing the media, MEA spokesperson Randhir Jaiswal highlighted India’s commitment to non-proliferation and compliance with global trade laws, asserting that Indian companies in question are not violating national regulations.

In a weekly briefing, Jaiswal on Friday commented on the sanctions, underscoring India’s strong framework for non-proliferation: “We have seen reports on U.S. sanctions. India has a robust legal and regulatory framework on strategic trade and nonproliferation controls. 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 have been effectively implementing relevant UNSC sanctions and UNSC resolution 1540 on non-proliferation.”

Jaiswal emphasised that the sanctioned Indian companies are not in breach of Indian law, while also assuring that the government is taking steps to keep businesses informed of export control provisions.

“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, as also inform them on new measures being implemented that could impact Indian companies in certain circumstances.”

“Regular strategic trade/export control outreach events for Indian industries and stakeholders are being carried out by agencies of the Government of India. We are also in touch with the US authorities to clarify issues,” Jaiswal added.

The U.S. recently announced sanctions against nearly 400 individuals and entities worldwide, citing the need to dismantle networks through which Russia procures dual-use goods. The sanctioned Indian firms Futrevo, Ascend Aviation, TSMD Global, and Mask Trans are accused of supplying components critical to Russia’s defence, including items for drones and aircraft manufacturing.

The Hindu Business Line reported that the U.S. has been actively engaging with Indian industry players to increase awareness around dual-use goods and compliance with international sanctions, especially for small and medium-sized enterprises (SMEs) that may lack resources to conduct extensive due diligence on sanctioned entities.

Ajay Sahai, Director General of the Federation of Indian Export Organisations (FIEO), pointed out the compliance challenges facing Indian businesses: “The sanctions pose challenges for Indian companies navigating international trade compliance and strategic autonomy. At times, despite due diligence by Indian companies, verifying an entity in which sanctioned entities have a controlling stake is a Herculean task to manage, beyond the resources of many SMEs,” Sahai said, as reported by The Hindu Business Line.