Negotiations over an India-US trade deal have picked up serious momentum in recent days, and the warming ties between the two countries are increasingly visible. Against this backdrop, the United States has taken a notable step by lifting the restrictions placed on four Indian companies. What makes it interesting is that these firms were originally targeted precisely because of their business dealings with Russia. The decision is now being read as a meaningful relief for the economic relationship between the two nations.
The move came as the United States updated its SDN List, short for the Specially Designated Nationals list. The companies that benefited from this revision are RRG Engineering Technologies Private Limited, Lokesh Machines Limited, Shaurya Aeronautics Private Limited and Galaxy Bearings Limited.
Why the sanctions were imposed
All of these firms had been placed on the list under Executive Order 14024. Back in 2024, OFAC imposed restrictions on 19 Indian companies and 2 individuals. The roots of the action trace back to 2022, when Russia attacked Ukraine and a wave of penalties was subsequently piled onto Moscow. The United States tightened the screws so that these restrictions could not be sidestepped in any way.
Listed companies among those cleared
Of the four companies removed from the list, Galaxy Bearings Limited and Lokesh Machines Limited are both listed on the stock market. Lokesh Machines stands out because it works with several major global players. Its client roster features names such as John Deere and Cummins of the United States, Volvo of Sweden, and Honda and Suzuki of Japan.
Another firm taken off the list, RRG Engineering Technologies, is tied to India's aviation sector. Its chairman and managing director, G.M. Ganga Rao, was earlier part of a task force set up by the Ministry of Civil Aviation to promote drone, or UAV, technology.
After the earlier US action, the Indian government had said it was in touch with Washington and that talks were under way on the matter. It is also worth noting that the fresh OFAC list added only 9 companies, most of them based in Mexico, while four companies were dropped from it.
A ban on Russian oil purchases too
Ever since the tariff push began, the United States has repeatedly gone after India over the Russia question. Donald Trump first slapped tariffs of up to 50 percent on India and later banned the purchase of Russian oil. That said, after tensions flared in the Middle East, the United States did grant India some leeway to keep buying Russian oil.
