The European Union (EU) on Thursday, under its 19th sanctions package, has selected 45 new entities and imposed strict sanctions on them, which may have direct links with Russia. The reason for that relationship is the use of advanced technology that can help the war industry. Through this step, the EU has made it clear that technical and economic assistance to Russia’s military activities will not be tolerated.
Three Indian companies also got trapped
Three Indian companies Aerotrust Aviation Private Limited, Ascend Aviation India Private Limited and Shree Enterprises are also included in these 45 institutions. The EU said these companies were either based in Russia, or involved in manufacturing goods such as CNC machine tools, microelectronics, and unmanned aerial vehicles (UAVs) that could be used to enhance advanced military capabilities.
Why was this decision taken?
The EU clarified in its statement that these entities are involved in the supply of ‘advanced dual-use items’, that is, equipment that may be for normal civilian purposes but also has the potential to be used in the war industry. For example, CNC machine tools and microelectronics can both provide technical support to Russia’s defense and industrial sectors.
According to him, in this 19th package, 17 institutions have been found not only in Russia but also in third countries. Of them, 12 are located in China and Hong Kong, three in India and two in Thailand.
India’s formal response not yet
When this sanctions list was announced, there was no immediate response from the concerned authorities in India. Thus, discussions are ongoing among policy-makers as to what further steps should be taken in such situations.
Does this mean that these companies were proven guilty?
The imposition of sanctions by the EU does not mean that the Indian justice system has convicted any company. This is a political-economic step, which has been taken in the background of the Russia-Ukraine war. The purpose of the sanctions is to create economic and technological pressure on Russia so that its military actions can be affected.
What could be the consequences going forward?
This decision may have an impact on trade relations between India and the European Union, airspace related transactions, and export-import of advanced technology. These three companies may have to face sanctions if they have overseas activities. Apart from this, other Indian companies have also received a signal that caution will have to be exercised in technology collaboration at the international level.