US blacklisted these Indian firms over Russia; Now it drops sanctions

Washington DC: The United States has removed four Indian companies from its sanctions list nearly two years after they were accused of supporting Russia-related activities, marking a significant development in India-US trade and diplomatic relations.

The US Department of the Treasury has removed four Indian companies from its Specially Designated Nationals (SDN) List, reversing sanctions that had been imposed over alleged links to Russia-related activities.

The companies delisted are Hyderabad-based RRG Engineering Technologies Private Limited and Lokesh Machines Limited, Ahmedabad-based Galaxy Bearings Limited, and Delhi-based Shaurya Aeronautics Private Limited.

The move was announced as part of the latest update by the US Treasury's Office of Foreign Assets Control (OFAC), which regularly revises its sanctions lists.

Why were these companies sanctioned?

The four firms were among 21 Indian entities sanctioned by OFAC in 2024 under Executive Order 14024, which targets individuals and organisations accused of providing financial, material, technological or other support to the Russian government.

The sanctions formed part of Washington's broader campaign to tighten restrictions on Russia following its invasion of Ukraine in 2022 and to prevent countries or companies from helping Moscow bypass international sanctions.

India had engaged with the US

Following the sanctions in 2024, the Indian government held discussions with US authorities regarding the affected companies.

At the time, the Ministry of External Affairs said India remained a responsible member of the international community and actively participated in global export-control regimes. The ministry also highlighted that it regularly conducts outreach programmes to help Indian businesses comply with export-control regulations and international trade laws.

Two firms are publicly listed

Among the four companies removed from the sanctions list, Lokesh Machines Limited and Galaxy Bearings Limited are publicly listed firms.

Lokesh Machines supplies engineering products to several international manufacturers, including John Deere, Cummins, Volvo, Honda and Suzuki, reflecting its strong presence in global manufacturing supply chains.

Meanwhile, RRG Engineering Technologies has close ties to India's aviation sector. Its Chairperson and Managing Director, GM Ganga Rao, previously served as an industry expert on the Ministry of Civil Aviation's 2018 task force focused on accelerating the development of unmanned aerial vehicle (UAV) technology.

Broader sanctions update

The removal of the four Indian companies came as part of a wider OFAC update that also added several individuals and organisations allegedly linked to drug trafficking networks in Mexico.

The US Treasury also released its quarterly report on licensing activities carried out under the Trade Sanctions Reform and Export Enhancement Act (TSRA) for the January-March 2026 period.

The delisting marks a notable easing of restrictions on the four Indian firms and could help restore their access to international financial systems and global business opportunities.

Why does India need US permission for Russian oil?

India does not need formal permission from the United States to buy Russian oil. As a sovereign country, India decides its own energy imports based on its national interests. However, because the US and its allies have imposed extensive sanctions on Russia following its invasion of Ukraine, Indian companies involved in buying, transporting, financing or insuring Russian oil must be careful not to violate those restrictions.

If a company is found to have helped Russia evade US sanctions or engaged with sanctioned individuals or entities, it could face penalties such as being added to the US sanctions list, losing access to the US financial system, or facing restrictions on international business. This is why Indian firms closely monitor US sanctions updates, even though India itself is not required to seek Washington's approval before purchasing Russian crude.