US Drops Four Indian Firms from Russia-Linked Sanctions List after Two Yrs

Four Indian companies have been taken off the United States Treasury's Specially Designated Nationals (SDN) List, ending nearly two years of sanctions imposed over claims that they aided Russia's defence manufacturing sector.

The companies cleared from the list are RRG Engineering Technologies Private Limited and Lokesh Machines Limited, both based in Hyderabad, Ahmedabad-headquartered Galaxy Bearings Limited and Delhi-based Shaurya Aeronautics Private Limited.

The US Treasury's Office of Foreign Assets Control (OFAC) announced the move as part of a wider update to its sanctions list, which also included fresh designations against individuals and groups tied to drug trafficking networks operating out of Mexico.

These four firms were part of a larger group of 21 Indian entities, 19 companies and two individuals, that Washington had sanctioned in 2024. Those sanctions were issued under Executive Order 14024, which allows the US to penalise entities accused of offering financial, material or technological help to Russia. The action was part of a wider American strategy to prevent third countries from helping Moscow bypass sanctions imposed after its 2022 invasion of Ukraine.

No explanation has been given by the Treasury for why these particular companies were dropped from the list at this time. Being on the SDN List typically means a company's assets in the US are frozen and it cannot legally transact with American individuals or institutions. Delisting removes both restrictions.

What India told Parliament

When the 2024 sanctions were first imposed, the Indian government said it had taken up the issue with US authorities. Responding to a query in Parliament, the Centre explained that the sanctions stemmed from Executive Order 14024, which covers entities suspected of assisting Russia in any form.

"This action has been taken by the US Government pursuant to its Executive Order (EO) 14024, which provides for US sanctions against individuals and entities who have directly or indirectly assisted, sponsored, or provided financial, material, or technological support, or goods or services, to or for the benefit of the Government of the Russian Federation," the government had stated.

The Centre further said India maintains a strong regulatory system for overseeing exports of sensitive and dual-use technologies, in keeping with its international commitments on non-proliferation. It pointed to India's membership in global export control frameworks such as the Wassenaar Arrangement, the Australia Group, and the Missile Technology Control Regime (MTCR).

"Government also regularly sensitizes Indian companies on export controls, including through regular outreach events in an effort to ensure that companies are not contravening Indian laws," the government had said.

None of the other Indian entities named in the 2024 sanctions have been removed so far, and the Treasury has given no indication of whether further reviews are underway.

Among the delisted companies, Lokesh Machines Limited and Galaxy Bearings Limited are listed on Indian stock exchanges. Lokesh Machines manufactures components and machinery used by global firms such as John Deere, Cummins, Volvo, Honda, and Suzuki.

RRG Engineering Technologies has ties to India's aviation industry. Its Chairperson and Managing Director, GM Ganga Rao, was part of the Ministry of Civil Aviation's 2018 task force set up to accelerate the development of unmanned aerial vehicle (UAV) technology in the country.