Indian firm shipped explosives to Russia despite US warnings

Business Recorder

3 days ago

WASHINGTON/KYIV/NEW DELHI: An Indian company shipped $1.4 million worth of an explosive compound with military uses to Russia in December, according to Indian customs data seen by Reuters, despite U.S. threats to impose sanctions on any entity supporting Russia's Ukraine war effort.
One of the Russian companies listed as receiving the compound, known as HMX or octogen, is the explosives manufacturer Promsintez, which an official at Ukraine's SBU security service said has ties to the country's military.
The official said that Ukraine launched a drone attack in April against a Promsintez-owned factory. According to the Pentagon's Defense Technical Information Center and related defense research programs, HMX is widely used in missile and torpedo warheads, rocket motors, exploding projectiles and plastic-bonded explosives for advanced military systems.
The U.S. government has identified HMX as 'critical for Russia's war effort' and has warned financial institutions against facilitating any sales of the substance to Moscow.
The HMX sale to Russian firms has not been previously reported.
Russian defense manufacturers have been working around the clock for the past several years to sustain President Vladimir Putin's war in Ukraine, which intensified with Russia's full-scale invasion of its neighbor in 2022.
India, which has recently forged closer ties with the United States in an effort to counterbalance China's growing influence, has not abandoned its longstanding military and economic ties with Moscow.
India's trade with Russia - especially its purchases of Russian oil - has remained robust, even as Western nations have tried to cripple Russia's war economy with sanctions. U.S. President Donald Trump threatened earlier in July to hit nations with a 100% tariff if they continued purchasing Russian crude.
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The U.S. Treasury Department has the authority to sanction those who sell HMX and similar substances to Russia, according to three sanctions lawyers. HMX is known as a 'high explosive,' meaning it detonates rapidly and is designed for maximum destruction.
Reuters has no indication that the HMX shipments violated Indian government policy. One Indian official with knowledge of the shipments said that the compound has some limited civilian applications, in addition to its better-known military uses.
India's foreign ministry said in a statement: 'India has been carrying out exports of dual-use items taking into account its international obligations on non-proliferation, and based on its robust legal and regulatory framework that includes a holistic assessment of relevant criteria on such exports.'
The U.S. State Department did not comment on the specific shipments identified by Reuters but said it had repeatedly communicated to India that companies doing military-related business are at risk of sanctions.
'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 U.S. sanctions.'
Russia's defense ministry did not respond to a request for comment.
'While India has not typically been among the primary jurisdictions used for circumventing sanctions, we are aware that isolated cases can occur,' Ukrainian presidential adviser Vladyslav Vlasiuk told Reuters.
'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, President Volodymyr Zelenskiy's top sanctions official.
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Reuters identified two HMX shipments sent in December by Indian firm Ideal Detonators Private Limited, both of which were unloaded in St. Petersburg, according to the Indian customs data. An Indian government official with direct knowledge of the shipments confirmed them.
One shipment, worth $405,200, was purchased by a Russian company called High Technology Initiation Systems, the data show. The other shipment, worth more than $1 million was purchased by Promsintez. Both purchasers are based in Samara Oblast, near the border of Kazakhstan in southern Russia, according to the data.
Ideal Detonators Private Limited, based in the Indian state of Telangana, did not respond to a request for comment.
Promsintez and High Technology Initiation Systems also did not respond to requests for comment.
While several Indian entities were sanctioned during the administration of former U.S. President Joe Biden for supporting Russia's war effort, sanctions were applied sparingly due to geopolitical considerations, according to two U.S. officials who worked on sanctions under Biden.
Under Trump, Russia-related sanctions work has slowed to a trickle, and it is not clear if the United States will take further action against Indian companies doing business with Russia's defense industry.
Washington has long sought closer relations with India to pull the South Asian country away from China.
Jason Prince, a partner at Washington-based law firm Akin, said the U.S. government often prefers to communicate its concerns privately to allies and only take punitive actions as a last resort.