Russia using third countries to obtain restricted items, says US official; lays stress on protecting India's trusted trade controls environment

Interacting with the media in New Delhi, Thea D Rozman Kendler, Assistant Secretary of Commerce for Export Administration said the United States and 38 other economies have imposed stringent strategic trade controls on Russia and Belarus in the wake of Russia's war against Ukraine and the US is looking at companies around the world being used by Moscow "to facilitate illicit procurement".

Kendler, who is in India to build on the momentum of US Commerce Secretary Gina Raimondo's visit to the country last month, said the two countries share a common security outlook which makes cooperation much easier.

During her visit, Kendler met Indian government officials and industry to discuss dual-use export controls issues.

She also engaged in final planning for the US-India Strategic Trade Dialogue (USISTD), the first meeting of which is slated to be held in Washington next month.

Kendler said she talked about mechanisms under the US strategic trade control systems, under export control systems available to Indian industry that are designed to facilitate faster and more efficient trade.

"Our strategic trade dialogue, shared commitment to export controls paves the way for this hi-tech cooperation."

She said India's accomplishments in the realm of strategic trade controls and high-tech trade helps undergrid "our shared security objectives".

"In my meetings, we also stressed the importance of protecting India's trusted strategic trade controls environment. As many are aware since Russia's invasion of Ukraine in February 2022, United States and 38 other economies have imposed stringent strategic trade controls on Russia and Belarus. We know that companies inside and outside the US are striving to keep pace with these changes and we thank these companies for their efforts," she said.

"We also know that Russia is illegally using third countries to obtain items that the US and other economies have restricted, we are actively following trade diversions and backfilling data very closely and taking responsive measures," she added.

Answering a query, she referred to sanctions on Russia and Belarus and said the US is "looking at companies around the world being used by Russia to facilitate its illicit procurement".

"The items that 39 economies have cut off from export to Russia, they are still trying to get them to use in their war machine. We are particularly concerned about that. We are working with partners all over the world to make sure that Russia isn't using that to backfill technology," she said.

Kendler said she is very excited to working to expanding opportunities for cooperation and collaboration in hi-tech trade with India.

"We are very interested on focusing on high technology and the opportunites for cooperation. There is very positive approach to our dialogue."

Answering a query on intellectual property rights protection, she said when a country has strong export control protections like India has it also has effect of stopping intellectual property theft.

"IP not part of my portfolio. When a country has strong export control protections like India does, like we do in the US, that also has the ancillary effect of stopping IP theft, because you are looking at intangible transfers of technology and that is controlled as though it was going to the country of the foreign national. If you have a foreign national working in a facility, you may want to protect IP from going to that person by having export controls in place and company compliance programme, you are protecting IP as well."

"I keep saying that I am excited and eager, that's true. I am very excited for the prospect of cooperating with India, I think we will work through any concerns about diversion risk as we work through our collaboratvie relationship," she added. (ANI)