Sanctions risk: Indian firm defends explosive shipment to Russia; says material for civilian use only
An Indian company that exported $1.4 million worth of an explosive compound to Russia last December said it complied with Indian rules and that the shipment was strictly for civilian industrial purposes, not military use.
According to news agency Reuters, Ideal Detonators Private Limited confirmed that the material exported, HMX, also known as octogen, was not of military grade. 'The shipment ... is for industrial activity and it's a civil explosive,' the Telangana-based firm said in an email response.
HMX is known for its powerful military applications, including use in missile and torpedo warheads and other advanced weapon systems.
The US government has called the compound 'critical for Russia's war effort' and has warned that any sale of such materials to Moscow could trigger sanctions under its treasury department's guidelines.
Reuters first reported that Ideal Detonators shipped HMX to two Russian buyers in last December, Promsintez and High Technology Initiation Systems (HTIS), according to Indian customs data.
One of them, Promsintez, has ties to Russia's military, a Ukrainian security official claimed, and its factory was targeted by a Ukrainian drone attack in April.
The US state department said it had communicated with India about the risks involved in doing military-related business with Russia. "We have repeatedly made clear to all our partners, including India, that any foreign company or financial institution that does business with Russia's military industrial base are at risk of US sanctions," a spokesperson was quoted as saying by Reuters.
India's foreign ministry, however, responded that all dual-use exports are regulated under a robust legal framework.
'India has been carrying out exports of dual-use items taking into account its international obligations on non-proliferation,' the ministry said.
According to Reuters, HMX is also used in limited civilian areas such as mining and industrial blasting. HTIS, one of the recipients, claims to manufacture explosives for mining and engineering projects. HTIS is listed as a subsidiary of Madrid-based Maxam, which is controlled by US private equity firm Rhone Capital.
Maxam is reportedly in the process of divesting its Russian subsidiaries.
While India has deepened ties with Washington in recent years, its historic defense and trade relationship with Moscow remains intact. Indian oil purchases and other trade with Russia have remained strong, even amid global sanctions over the Ukraine war.
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