Amidst ongoing Russia-Ukraine conflict, an Indian firm exported explosives to Russia despite warnings of sanctions from the US. According to a Reuters report, an Indian company exported HMX, which is an explosive compound with military use, with an export value of $1.4 million to Russia in December. The Reuters report quoted Indian customs records reviewed by it.
According to documentation from the Pentagon's Defense Technical Information Center and associated defence research initiatives, HMX is a crucial component in various military applications, including missile warheads, torpedo systems, rocket propulsion units and sophisticated military explosive devices.
The US has designated HMX as important to Russia's military operations and has cautioned financial institutions against enabling any Moscow-bound transactions of this substance. This particular HMX transaction with Russian entities remained undisclosed until now, the report said.
According to Reuters' investigation, Indian company Ideal Detonators Private Limited dispatched two HMX consignments in December, which arrived in St. Petersburg. This information was verified by Indian customs records and confirmed by a government official with direct knowledge.
The customs data reveals that High Technology Initiation Systems, a Russian firm, acquired one shipment valued at $405,200. Promsintez purchased the other consignment, worth over $1 million. Both purchasing companies are located in Samara Oblast, near Kazakhstan's border in southern Russia.
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India maintains its historical military and economic partnerships with Moscow whilst strengthening its alliance with the United States to balance China's increasing regional dominance.
Despite Western sanctions aimed at weakening Russia's wartime economy, India's commercial relations with Russia remain strong, particularly concerning petroleum imports.
Promsintez, a Russian explosives manufacturer identified as one of the recipients of the explosives, maintains connections with the Russian military, according to a Ukrainian SBU security service official. The same official confirmed that Ukraine conducted a drone strike on a Promsintez facility in April.
Russian defence production facilities have maintained continuous operations in recent years to support President Vladimir Putin's military campaign in Ukraine, which escalated in 2022.
In July, President Donald Trump warned of imposing a complete tariff on nations continuing to buy Russian oil.
According to three sanctions lawyers, the US Treasury has authority to penalise entities selling HMX and similar materials to Russia. HMX is classified as a "high explosive" designed for maximum impact with rapid detonation properties.
The HMX deliveries appear consistent with Indian governmental policies. An Indian official familiar with these transactions noted that besides its primary military applications, the compound has some civilian uses.
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Russia oil squeeze: Trump’s 100% tariff threat - should India panic?The Indian foreign ministry issued a statement emphasising that the country conducts exports of dual-use items whilst adhering to international non-proliferation obligations, supported by a comprehensive legal and regulatory framework that evaluates relevant criteria for such exports.
When approached about the specific consignments identified by Reuters, the US State Department refrained from commenting. However, they noted that they had consistently warned India about potential sanctions risks for companies engaged in military-related commerce.
A spokesperson from the US State Department highlighted India's position as a strategic ally, with whom they maintain open discussions, including matters concerning India's ties with Russia.
They reiterated their consistent message to all partners, including India, about the risk of US sanctions for any international company or financial institution conducting business with Russia's military industrial sector.
"India is a strategic partner with whom we engage in full and frank dialogue, including on India's relationship with Russia," a spokesperson said.
"We have repeatedly made clear to all our partners, including India, that any foreign company or financial institution that does business with Russia's military industrial base are at risk of US sanctions."
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"We can confirm that the Russian company Promsintez has appeared on our radar in the past, including in connection with cooperation involving Indian counterparts," added Vlasiuk, who serves as President Volodymyr Zelenskiy's principal sanctions official.
US Reluctance To Sanction India
During Joe Biden's presidency, whilst some Indian organisations faced sanctions for supporting Russia's military activities, the administration applied these measures cautiously, considering diplomatic implications, according to two former US sanctions officials.
The Trump administration has significantly reduced Russia-related sanctions activity, and there is uncertainty regarding potential US actions against Indian firms engaged with Russia's defence sector.
The United States continues to pursue stronger ties with India, aiming to reduce the South Asian nation's alignment with China.
Eric Prince from the London-based law firm Akin noted that the US administration typically prefers addressing concerns with allies through private diplomatic channels, using punitive measures only when necessary.
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