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The US Treasury Department has removed four Indian companies from its ‘Specially Designated Nationals’ (SDN) list under its new sanctions update. The companies which have been removed from the list include RRG Engineering Technologies Pvt Ltd and Lokesh Machines Ltd of Hyderabad, Galaxy Bearings Ltd of Ahmedabad and Shaurya Aeronautics Pvt Ltd of Delhi. This step has been taken almost two years after these four companies were included in the ban list of the US Office of Foreign Assets Control (OFAC). In 2024, OFAC imposed sanctions on 21 Indian entities, including 19 companies and two individuals, under Executive Order 14024. The order targets people accused of providing financial, material, technical or other assistance to the Russian government.
Why were the restrictions lifted?
Washington’s action was part of broader efforts to prevent Russia from trying to evade sanctions imposed in 2022 following its attack on Ukraine. Following the sanctions, the Indian government had said that it had discussed the matter with Washington. The Ministry of External Affairs had said that India is a “responsible member of the international community” and participates in major multilateral export control regimes. Additionally, the ministry also runs regular outreach programs to ensure that Indian companies comply with export control laws and do not violate domestic regulations.
The removal of these companies from the SDN list was announced as part of a larger update that also included several individuals and entities linked to drug trafficking networks in Mexico. In a statement, Treasury’s Office of Foreign Assets Control (OFAC) said it has released its quarterly report on licensing activities conducted under the ‘Trade Sanctions Reform and Export Enhancement Act’ (TSRA) for the period January to March 2026.
Two companies are listed in the stock market
Galaxy Bearings Limited and Lokesh Machines Limited, two of the four Indian entities removed from the sanctions list, are publicly listed companies. Lokesh Machines’ customers include many global manufacturers, including John Deere and Cummins of America, Volvo of Sweden and Honda and Suzuki of Japan. Another company removed from the list, RRG Engineering Technologies, is associated with India’s aviation sector. Its Chairman and Managing Director, GM Ganga Rao, served as an industry expert in the Civil Aviation Ministry’s 2018 task force to rapidly advance Unmanned Aerial Vehicle (UAV) technology.
