The US Treasury Department's Office of Foreign Assets Control (OFAC) removed four Indian companies from its Russia-related sanctions list in its latest update. According to reports from CNBC TV18, Business Standard, PTI, and RIA Novosti, the entities delisted from OFAC's Specially Designated Nationals (SDN) List are RRG Engineering Technologies Private Ltd, Lokesh Machines Ltd, Galaxy Bearings Ltd, and Shaurya Aeronautics Private Ltd. These companies had previously been designated under Executive Order 14024, which targets activities linked to Russia's military-industrial sector. The removals were announced on Tuesday by the US Department of the Treasury, as per PTI, with no reason immediately provided for their de-listing. The companies have been deleted from the Office of Foreign Assets Control's (OFAC) Specially Designated Nationals and Blocked Persons (SDN) List, meaning they are no longer subject to the specific US sanctions imposed under that programme. The move comes nearly two years after the four companies featured in the sanctions list of the US Office of Foreign Assets Control (OFAC).
The delisting announcement triggered significant market reactions among the affected companies. As reported by CNBC TV18 and PTI, Lokesh Machines shares were trading 5% higher at ₹285.70 on Wednesday, with the company's shares up 5 per cent according to the latest PTI report. Both Galaxy Bearings and Lokesh Machines are publicly listed companies, making their market performance particularly notable following the sanctions removal. The companies are strategically located across India's major industrial hubs - RRG Engineering Technologies and Lokesh Machines are based in Hyderabad, Telangana, Galaxy Bearings in Ahmedabad, Gujarat, and Shaurya Aeronautics in New Delhi. According to the Business Standard, the companies had been accused of supplying advanced technology and equipment for Russia's military-industrial base. Two of the four Indian entities removed from the sanctions list – Galaxy Bearings Limited and Lokesh Machines Limited – are publicly listed companies. Lokesh Machines counts several global manufacturers among its clients, including US-based John Deere and Cummins, Sweden's Volvo, and Japan's Honda and Suzuki.
According to the Business Standard and PTI, Galaxy Bearings Ltd was sanctioned in October 2024 for allegedly exporting dozens of high-priority dual-use equipment, including roller bearings and roller assemblies, to Russian entities. Shaurya Aeronautics Private Ltd was sanctioned for allegedly sending shipments of radar apparatus, radio navigational aid apparatus, radio remote control apparatus and electrical apparatus to Russia. RRG Engineering Technologies was accused of sending over 100 shipments of microelectronics to SDN-listed, Russia-based Arteks Limited Company. Lokesh Machines had been accused of sending dozens of shipments of machine tools to various Russian manufacturing companies. The companies are strategically located across India's major industrial hubs - RRG Engineering Technologies and Lokesh Machines are based in Hyderabad, Telangana, Galaxy Bearings in Ahmedabad, Gujarat, and Shaurya Aeronautics in New Delhi. Another delisted entity, RRG Engineering Technologies, has links to India's aviation sector. Its chairperson and managing director, GM Ganga Rao, served as an industry expert on the ministry of civil aviation's 2018 task force on fast-tracking unmanned aerial vehicle (UAV) technology.
Following the sanctions, the Indian government said it had engaged with Washington on the matter. The ministry of external affairs had maintained that India is a "responsible member of the international community" and participates in key multilateral export control regimes, while regularly conducting outreach programmes to ensure Indian companies comply with export-control laws and do not violate domestic regulations. The Washington's action were part of the broader efforts to prevent the circumvention of sanctions imposed on Russia following its 2022 invasion of Ukraine. The delistings were announced as part of a broader update to the SDN List, which also included the addition of several individuals and entities allegedly linked to drug trafficking networks in Mexico.
On the counter-narcotics front, OFAC expanded sanctions targeting alleged members and associates of Mexico's Jalisco New Generation Cartel (CJNG). Two Mexican nationals, Oscar Guillermo Juraidini Silva and J. Refugio Ruiz Villagomez, were added to the SDN List under counterterrorism authorities and Executive Order 14059, which targets foreign persons involved in the global illicit drug trade. The Treasury Department also sanctioned nine entities allegedly linked to the designated individuals and the cartel, including logistics, transportation, financial services and real estate companies based mainly in Mexico, along with one company registered in the United Kingdom. These sanctions block any assets under US jurisdiction and generally prohibit US persons from conducting business with the designated individuals and entities. Separately, OFAC published its quarterly report covering licensing activities from January through March 2026 under the Trade Sanctions Reform and Export Enhancement Act (TSRA), outlining applications processed for exports of agricultural commodities, medicines and medical devices to Iran under a specific licensing regime.
