Russia is reportedly making use of the significant amount of money it gained by selling oil to India to purchase "sensitive goods" from the country that would help in its war against Ukraine.
According to a Financial Times report, the industry and trade ministry of Russia came up with confidential plans to procure critical electronics through channels that are not visible to the West. The ministry oversees defence production for Moscow.
Russia relies on electronic components produced in other countries for use in drones and other electronic warfare. According to the report, Russia sees India as an alternative source to procure goods that it used to earlier get from "unfriendly countries."
According to the communication accessed by Financial Times, Russia was even considering investing in Russia-Indian electronics development and production facilities.
This alleged increase in trade flow comes despite the warning by Deputy Treasury Secretary Wally Adeyemo, who in a letter to Indian Bank's Association, said, "We know that the Russian military relies on importing sensitive goods, like machine tools and microelectronics, and it looks to foreign financial institutions to facilitate these transactions...Any foreign financial institution that does business with Russia's military industrial base risks being sanctioned itself, and it could lose access to the U.S. financial system, and likely other financial systems."
Financial Times reports that leaked documents showed that Alexander Gaponov, an official with the 'radio-electronics' division of Russia's industry and trade ministry asked a Moscow-based outfit that has ties with Russian security services to come up with plans to procure critical components from India.
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The forum reportedly drew up a plan for helping Russia spend its funds lying with the Indian banks. According to the leaked letters, the president of the forum wrote that Moscow could form a “closed payment system between Russian and Indian companies," that would be invisible to the West.
Russia is set to buy “telecommunication, server, and other complex electronic equipment” from India, according to the leaked communication.
The funds could also be used for supporting joint ventures for electronic factories that would help meet “to meet the needs of Russian critical information infrastructure”.