China and India Evade Sanctions to Prop Up Russia’s War Machine

Recent investigations underscore a complex global dynamic where major economies, notably China and India, appear to be actively circumventing Western sanctions to bolster Russia’s war efforts. Despite escalating international pressure and widespread condemnation, these nations continue to facilitate Moscow’s military-industrial complex through various indirect and direct channels, prompting significant geopolitical and economic concerns.

• China and India are reportedly aiding Russia’s war effort by circumventing Western sanctions.
• A private Indian company allegedly secured a $1.4 million deal for explosive compounds with Russian military-linked firms.
• Chinese companies purportedly supplied mislabeled drone engines to a Russian weapons manufacturer, IEMZ Kupol.
• The U.S. has implemented hundreds of sanctions against entities supporting Russia, yet Beijing’s support for Moscow persists.
• Both India and China defend their trade practices while condemning Western sanctions as unilateral.
• Former President Trump has threatened 100% sanctions on Russian oil purchasers if a peace deal is not reached by early September.

Findings from Reuters indicate that both China and India have been instrumental in aiding Russia, frequently employing front companies and deceptive trade practices. While their extensive purchases of Russian oil – a primary source of Moscow’s revenue – have drawn considerable scrutiny, evidence now points to more direct contributions to Russia’s battlefield capabilities. For instance, a private Indian company reportedly entered into a $1.4 million agreement for explosive compounds with two Russian entities. This included a $1 million sale to Promsintez, an explosive manufacturing firm with established ties to the Russian military, and an additional $400,000 worth of explosives acquired by High Technology Initiation Systems, a Russian underground mining company.

Beijing’s role extends to supplying critical components for Russia’s drone production. Chinese-manufactured engines intended for drone assembly were allegedly shipped to IEMZ Kupol, a Russian weapons manufacturer. These shipments, originating from Beijing Xichao International Technology and Trade, were reportedly mislabeled as “industrial refrigeration units” to bypass Western sanctions enacted in October 2024. These sanctions were specifically designed to disrupt Russia’s drone-based supply chains, which have been crucial to its military operations in Ukraine. IEMZ Kupol is said to have a contract with the Russian defense ministry to significantly increase its production of long-range drones, targeting 6,000 units this year, a substantial rise from the 2,000 drones produced in 2024.

The United States has responded by imposing hundreds of sanctions against global entities supporting Russia’s war, with a notable concentration on Chinese individuals and companies. However, these measures have not deterred Beijing’s continued support for Moscow. Both India and China maintain that their companies adhere to national laws, while simultaneously condemning Western sanctions, including the European Union’s recent targeting of Indian refineries processing Russian oil.

Geopolitical Stances and Economic Repercussions

A spokesman for the Chinese embassy asserted that China has maintained a “just and objective position” on the Ukraine crisis, denying the provision of lethal weapons and highlighting stringent export controls on dual-use items. The spokesman also stated opposition to “U.S. abuse of unilateral sanctions and ‘long-arm jurisdiction’.” In contrast, a U.S. State Department spokesman countered this, stating that “China is the major enabler of Russia’s war in Ukraine,” providing approximately 80% of the dual-use items essential for Russia’s military sustenance.

Regarding India, a U.S. State Department spokesman characterized the relationship as a “strategic partner” with ongoing “full and frank dialogue” on its ties with Russia. The U.S. has consistently warned all partners, including India, about the risks of U.S. sanctions for any foreign entity or financial institution engaging with Russia’s military-industrial base.

The broader economic landscape suggests increasing pressure on these nations. Former President Donald Trump has publicly stated his intent to implement 100% sanctions on countries purchasing Russian oil if a peace agreement with Vladimir Putin is not reached by early September. Such a measure, if enacted, would likely have significant economic repercussions, particularly for China and India, given their substantial reliance on Russian energy imports.