The United States on Wednesday added 19 private Indian companies and two Indian individuals to a list of “nearly 400 entities and individuals” from various countries facing sanctions. These sanctions are due to their alleged involvement in supporting Russia’s war efforts in Ukraine, which adds a new point of tension to U.S.-India relations.

Although US sanctions have targeted Indian companies before. However, the most recent action was the "most concerted push so far against third-country evasion," a US State Department official told Reuters. The US move coincides with strained bilateral relations with India due to claims that an Indian national was involved in a scheme to kill Sikh separatist Gurpatwant Singh Pannun on US soil. The stakes were raised this week when the US stated that it would not be happy until India's probes into the alleged foiled plot produce "meaningful accountability."

The State Department stated the following on Wednesday when it announced the sanctions related to Russia's invasion of Ukraine: “The United States is today sanctioning nearly 400 entities and individuals for enabling Russia’s prosecution of its illegal war. In this action, the Department of State is imposing sanctions on more than 120 individuals and entities. Concurrently, the Department of the Treasury is designating more than 270 individuals and entities. The Department of Commerce is also adding 40 entities to its Entity List.”

China, Malaysia, Thailand, Turkey, and the United Arab Emirates, in addition to India, are targeted for selling "items and other important dual-use goods to Russia, including critical components that Russia relies on for its weapons systems to wage war against Ukraine," according to the statement, which aims to stop sanctions evasion. “Those items include microelectronics and computer numerical control items (CNC) on the Common High Priority List (CHPL), as identified by the US Department of Commerce’s Bureau of Industry and Security (BIS) alongside the European Union (EU), United Kingdom (UK), and Japan,” it remarked.

“The United States will continue to use all tools at its disposal to disrupt support for Russia’s military-industrial base and curtail the Kremlin’s ability to exploit the international financial system and generate revenue in furtherance of its war against Ukraine…the Department seeks to disrupt the networks and channels through which Russia procures technology and equipment from entities in third countries to support its war effort,” it asserted. In addition, the US State Department described the charges against Ascend Aviation India, Mask Trans, TSMD Global, and Futrevo, four Indian companies on its list of 120.

While naming the company's directors, it said that Ascend Aviation "sent over 700 shipments to Russia-based companies between March 2023 and March 2024," including "over $200,000 worth of CHPL items, such as US-origin aircraft components." According to the State Department, from June 2023 to at least April 2024, Mask Trans was "involved in the supply of over $300,000 worth of CHPL items such as aviation components to Russia-based and US-designated S 7 Engineering LLC."

The designation was given to the other two Indian companies for allegedly "operating or having operated in the technology sector of the Russian Federation economy." TSMD Global Private Limited, an Indian company, shipped at least $430,000 worth of CHPL items to Russian companies, including Electron Komponent, and the US-designated companies, Alfa Limited Liability Company, Limited Liability Company VMK, and joint stock company Avtovaz, according to the State Department.

"These shipments, which took place between July 2023 and March 2024, included BIS CHPL Tier 1 and 2 items of US and EU origin, such as electronic integrated circuits, central processing units, and other fixed capacitors," the allegation read. Futrevo was charged by the State Department with "supplying more than $1.4 million worth of CHPL items, including electronic components, to Russia-based and US-designated Limited Liability Company SMT-ILOGIC, the manufacturer of Orlan drones with Russia-based and US-designated Special Technology Center." According to the statement, "the shipments were from January 2023 to at least February 2024."

The two Indian nationals facing sanctions are Vivek Kumar Mishra and Sudhir Kumar, who are directors at Ascend Aviation, a company based in Delhi. The US has previously imposed sanctions on Indian companies as well. In November 2023, Si2 Microsystems was placed on the restricted "Entities List" because it supplied US-made integrated circuits to the Russian military. This was against the law since such transfers were banned after Russia invaded Ukraine, and they did not have the necessary license to do so.

In June, US Ambassador Eric Garcetti warned that Indian companies that break global sanctions against Russia should be prepared for the "consequences" when trying to do business with European countries and other US allies. The relationship between the United States and India is deeper and wider than it has ever been, but it is not deep enough to be taken "for granted," according to Garcetti a month later. The speech was given a few days following Prime Minister Narendra Modi's trip to Russia.