Russia secretly purchases dual-use goods from India after China imposes restrictions - FT
Photo: Modi and Putin (Getty Images)
Russia has secretly been buying dual-use goods from India and exploring construction opportunities in the country. This is evidenced by leaked correspondence, according to the Financial Times.
As the FT reported, Russia has been exploring the possibility of creating components for both civilian and military use in India.
Specifically, the Russian Ministry of Industry and Trade developed confidential plans to spend around 82 billion rupees (1 billion USD) on protecting critical electronics through channels hidden from Western governments. The goal was to use significant reserves of rupees accumulated by Russian banks from oil sales to India. Russia considered India as an alternative market for supplying critical goods “previously supplied from unfriendly countries”.
The leak is connected to Russian official Alexander Gaponov, who is the deputy head of the Radioelectronics department at the Ministry.
In 2022, he approached the Consortium for Foreign Economic Activity and International Interstate Cooperation in Industry, requesting plans for acquiring essential components in India. However, he was told that "specific plans" consisting of five stages were already prepared.
Russia and India were to create a closed payment system for trade that the West could not control. The documents indicate that in mid-2022, trade of several categories of goods increased sharply.
India attracted Russia with dual-use goods that could be used as components for technology, drones, and other defense equipment. Supplies of these goods to Russia had been significantly restricted by sanctions. Additionally, Russia planned to invest in Russian-Indian enterprises focused on developing and manufacturing electronics to circumvent sanctions.
One of the suppliers to Russia, amounting to $4.9 billion, is the Indian company Innovio Ventures, which provides drones and electronic equipment.
India-Russia relations
Russia is one of the largest suppliers of energy resources to India. Following Western sanctions against Russia, India increased its purchase of Russian oil at discounted prices, despite criticism from the West. Additionally, India is procuring Russian dual-use goods that can be used in the military sector.
However, after Russia's full-scale invasion of Ukraine, a range of sanctions were imposed on Russia. The Kremlin sought to circumvent these sanctions through China.
On July 31, China adjusted its export controls on drones intended for military use, as Beijing faced growing criticism from the US and its allies over its support for Russia's war against Ukraine.
