US Lifts Sanctions On Four Indian Firms Accused Of Supporting Russia After Two Years

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United States has lifted sanctions on four Indian companies that were previously accused of supporting Russia's defence-industrial base, marking a significant development in Indo-US economic relations nearly two years after the restrictions were imposed.The companies were removed from the US Treasury Department's Office of Foreign Assets Control (OFAC) Specially Designated Nationals (SDN) List as part of the agency's latest sanctions update.

Four Indian Firms Delisted

The companies removed from the sanctions list are:

• RRG Engineering Technologies Private Limited (Hyderabad)
• Lokesh Machines Limited (Hyderabad)
• Galaxy Bearings Limited (Ahmedabad)
• Shaurya Aeronautics Private Limited (New Delhi)

The four firms had been sanctioned in 2024 under Executive Order 14024, which targets individuals and entities accused of providing financial, material or technological support to the Russian government.

Why They Were Sanctioned

The sanctions formed part of Washington's broader campaign to prevent countries and companies from helping Russia circumvent Western restrictions imposed after Moscow's 2022 invasion of Ukraine.In total, OFAC had sanctioned 21 Indian entities in 2024, including 19 companies and two individuals, alleging they had contributed to Russia's defence-industrial supply chains. At the time, the measures drew attention because India has maintained long-standing defence and commercial ties with Russia while simultaneously expanding strategic cooperation with the United States.

India Had Engaged With Washington

Following the sanctions, the Indian government initiated discussions with US authorities. The Ministry of External Affairs stated that India remained a responsible member of the international community and adhered to international export-control obligations.New Delhi also emphasised that it regularly conducts industry outreach programmes to ensure Indian companies comply with domestic export-control laws and global regulatory standards. The latest delisting suggests those engagements have resulted in a reassessment of the four companies' status.Two of the delisted firms are publicly traded companies:Lokesh Machines Limited- Manufactures precision engineering products. Counts major global companies including John Deere, Cummins, Volvo, Honda and Suzuki among its customers.Galaxy Bearings Limited- Manufactures bearings and engineering components for domestic and international markets.One of the delisted firms, RRG Engineering Technologies, has links to India's aviation sector. Its Chairman and Managing Director G.M. Ganga Rao previously served as an industry expert on the Ministry of Civil Aviation's 2018 task force established to accelerate the development of unmanned aerial vehicle (UAV) technology in India.The removal of the four Indian companies formed part of a broader OFAC update that also added several new individuals and organisations allegedly linked to drug trafficking networks in Mexico. The Treasury Department also published its quarterly report on licensing activities conducted under the Trade Sanctions Reform and Export Enhancement Act (TSRA) covering the January-March 2026 period.Removal from the SDN List restores the ability of the affected companies to conduct transactions with US persons and businesses without the restrictions associated with OFAC sanctions, subject to applicable US laws and regulations.