India-based companies are among dozens of entities that could face fresh European Union export-control restrictions under the bloc’s proposed 21st sanctions package against Russia, as Brussels tightens its efforts to curb networks accused of helping Moscow sustain its war economy.
The proposed sanctions package, unveiled by the European Commission, includes nearly 50 companies located across countries such as India, China, Trkiye, Kyrgyzstan, Kazakhstan and the United Arab Emirates, according to European Union officials.
The latest measures are aimed at companies that the EU believes are providing support to Russia’s military-industrial complex or helping it bypass existing sanctions imposed after Moscow’s invasion of Ukraine.
“We are also targeting companies providing support to Russia’s military-industrial complex,” Kaja Kallas, the European Union’s High Representative for Foreign Affairs and Security Policy, said in a post on X.
The proposed package is the latest attempt by the European Union to increase economic pressure on Russia and reduce its ability to finance its military operations.
Announcing the new measures, Kallas said the EU intends to further weaken Russia’s economic capabilities.
“Brick by brick, we are collapsing the foundations of Russia’s war economy,” she said.
Apart from targeting companies outside Russia, the package proposes more than 30 fresh sanctions related to Russia’s drone manufacturing sector.
The EU also plans to expand export restrictions on materials and technologies considered important for Russia’s industrial and defence production.
The proposed list includes restrictions on products such as nickel powders, specialised metals and high-performance alloys that could be used in industrial applications.
While the EU has not publicly named the India-based entities in the initial announcement, the inclusion of companies operating from India is significant because it highlights increasing scrutiny of third-country networks involved in trade with Russia.
The proposed measures are aimed at preventing the alleged diversion of goods and technologies that could strengthen Russia’s defence manufacturing capabilities.
The sanctions could place restrictions on the targeted entities’ ability to receive certain European goods and technologies if the package is approved.
The proposed 21st package goes beyond export controls.
The EU is also seeking a temporary freeze on the Russian oil price cap and fresh sanctions against institutions and businesses that it says are helping Russia generate revenue or evade existing restrictions.
The proposed designations would include banks, weapons manufacturers, oil traders, refineries and cryptocurrency operators located in third countries that are alleged to be facilitating sanctions evasion.
The package also includes plans to widen import restrictions on several categories of goods, including certain automobile parts, precious metal ores and chemicals.
The latest sanctions package has not yet come into force.
The proposals must receive approval from all European Union member states before they can be formally adopted.
If approved, it would become the 21st round of EU sanctions against Russia since the start of the Ukraine conflict and would further expand the bloc’s restrictions beyond Russian entities to companies and institutions operating in other countries.