What happens to U.S.-blacklisted Indian firms?

• The U.S. Treasury department has imposed sanctions on 19 Indian entities, including companies and individuals, for supplying “dual-use” technologies to Russia.
• The companies, mostly based in Delhi, Uttar Pradesh, Bengaluru, and Hyderabad, are reputable, well-established companies dealing in technological manufacturing.
• The companies will be on a U.S. “blacklist”, have assets or funds in the U.S. frozen, and face travel bans.
• The Ministry of External Affairs (MEA) has been muted on the action by the U.S., stating that the companies are not in violation of Indian laws.
• The MEA emphasized that India has a robust legal and regulatory framework on strategic trade and non-proliferation controls.
• The government could increase measures to sanction-proof Indian companies doing business with Russia, such as building more structural banking mechanisms and facilitating payments in national currencies.
• The rejection of any U.S. decision will come at the cost of bilateral ties, and the government will have to evaluate the cost-benefit calculus on whether to accept U.S.’s moves or to react more strongly to sanctions.
• Analysts predict that the new U.S. administration after Donald Trump’s electoral win is expected to pursue a softer line on Russia, but it is unlikely that these sanctions will be removed anytime soon.