Indian Traders Saw a War and Cashed In

In March 2022, as Russian missiles rained down on Kyiv and Ukraine’s allies scrambled to isolate Moscow, aerospace giants Boeing and Airbus were among the first western companies to announce a clean break.

“In line with international sanctions now in place, Airbus has suspended support services to Russian airlines, as well as the supply of spare parts to the country,” the European aerospace giant declared, following on the heels of its US competitor Boeing.

But three years into the full-scale invasion, with strict western sanctions forbidding EU and UK companies from selling aircraft parts to Russia, and the US imposing massive export restrictions, a trove of customs data appears to tell a very different story.

Parts distributed by Boeing, Airbus subsidiary Satair, Leonardo-linked Italian firm Superjet International and over 100 suppliers across Europe and the US have reached Russia via Indian intermediaries, Investigate Europe analysis of customs records indicates.

Reporters tracked over 700 individual cargoes — with an estimated value of more than $50 million — from the premises of western companies to India and then onto airlines and firms in Russia, between January 2023 and September 2024. Items unloaded there ranged from critical generators, sensors, propeller blades and cockpit displays to small screws, bolts and filters.

More than 40 per cent of the cargoes sent to Russian companies, long reliant on foreign-made parts, appear to have initially come from the US, and one-third came from European airports.

There is no suggestion of illegality on part of the western suppliers nor that those companies were aware that their products would reach Russia.

While previous reporting has focused on intermediaries in Turkey, Kazakhstan, Kyrgyzstan and China, the investigation, published with media in 11 countries, reveals how India has become an important transit route for Russia’s ailing aviation industry. Some of the Indian companies involved were flagged by the US late last year as being part of “sanctions evasion” networks.

In response to the investigation, Superjet International said it would “temporarily suspend” business with Allestro Aero Solutions, an Indian firm which which customs data suggests had re-exported its high-value parts to a sanctioned Russian company.

More than 200 of the items traded could have a potential military use, analysis of their declared customs codes shows. Most of the Russian importers were civilian airlines. These included Utair, a company sanctioned in December by the EU for providing “logistical support to the Russian Armed Forces”, which received around a quarter of the cargoes.

According to French aviation expert Xavier Tytelman, even the biggest companies can’t track every shipment beyond the first buyer — but that doesn’t absolve them of responsibility.

“For example, a French company with too many requests coming from Kazakhstan could say to the French government, ‘I think some of my parts are being diverted,’” he said.

Boeing and Airbus’ suspect Indian clients

Nestled between a beauty salon and a mechanic’s on a Delhi side street are the low-key headquarters of Aerotrust Aviation.  “We deliver the best,” the text wrapped beneath the company’s logo proudly proclaims. What they deliver internationally are spare parts for aircraft – almost exclusively to Russia.

Aerotrust formed in late 2021 and quickly established itself in the Russian market. Of the roughly $7 million worth of parts it has dispatched in total to Russia since January 2023, around 80 per cent can be traced back to the facilities of western companies, analysis of customs data suggests. 

Its top Russian client appears to have been the state-owned airline group Aeroflot, which has struggled to keep its fleet in the air in the face of global sanctions. In 2023, around 15 cargoes seem to have left Boeing facilities for Aerotrust, most of which were later re-exported to Russian buyers, including Aeroflot.

In total, Boeing has sent at least 80 cargoes to India that were later re-exported in part or in whole to Russia since 2023, according to the analysis. Most of these trades, including valves, fasteners, fuel sealants and a battery, went via another Indian buyer: Ascend Aviation.

A host of western firms have sold aircraft parts to Ascend which later went to Russia, including Airbus, a company part-owned by the French, German and Spanish states. Airbus subsidiary Satair sent 12 cargoes to the Indian firm between September 2023 and May 2024, customs data suggests. All later went to Russian buyers, Aeroflot and Ural Airlines among them.

Following the invasion of Ukraine and subsequent US sanctions on Russia aimed at curbing the war, India’s historically close ties with Moscow, coupled with its growing proximity to Washington, have allowed Indian traders an opportunity in conflict, turning them into key intermediaries in global trade. 

In response to western sanctions on Russian crude oil, India significantly ramped up its purchases, becoming one of the largest buyers and, in July 2024, even surpassing China. This policy has received implicit approval from Washington, as India’s procurement of discounted Russian oil helps maintain the global oil supply – and even finding its way to Europe – while limiting Russia’s profits. 

The US, however, adopted a starkly different stance when Indian traders jumped at the opportunity to mint from the conflict following the export controls restricting Moscow’s access to critical military technologies. In the year 2024, scrutiny on Indian entities through sanctions was the highest, since the punitive measures imposed after India's nuclear tests in Pokhran.

In October 2024, the US State Department imposed 400 extraterritorial sanctions – penalties on third parties operating beyond US jurisdiction – on entities worldwide.  Among those caught in the blitz were 19 Indian companies and two directors from one firm. Several firms in the aviation sector were named, all were accused of trading components categorised under the “Common High Priority List,” a registry of goods deemed essential to Russia’s war.

Following these sanctions, a legal advisory note from Cyril Amarchand Mangaldas, a law firm representing some affected companies, confirmed that the Indian government engaged with US officials to discuss the ramifications. Certain sanctioned Indian entities reportedly participated in these meetings. We couldn’t independently verify the meeting’s discussions.

In December 2024, India’s Minister of State for External Affairs, Kirti Vardhan Singh, informed the Parliament, stating, “Government of India is engaged with the US Government on this matter.” He further asserted that these firms had not violated Indian law and that India remained in full compliance with its obligations to the UN Security Council and its commitments to the non-proliferation of weapons of mass destruction. 

The fallout for Indian traders is grave and real. Addressing the US sanctions, Ameeta Verma Duggal, Partner at Delhi-based law firm DGS Associates, explained, “These entities cannot do business with the US anymore. The sanctioned directors will also no longer be able to travel to the US.” For sanctioned entities, Duggal added, that their directors will also be on the US watchlist, attracting scrutiny to their other businesses as well.

Reversing these sanctions is a cumbersome task. Duggal noted that many of these firms are likely to continue their dealings with Russia. “Several of these firms acting as intermediaries are small businesses which were not really export oriented, or even had a considerable business presence in western markets before the conflict. They saw an opportunity and cashed in,” she said.

Investigate Europe, in collaboration with The Reporters’ Collective, traced several of these firms and found that at least five were incorporated after the US first announced its sanctions.

One case stood out.

A firm initially registered as an online retailer of garments abruptly pivoted to being a trader of aviation parts.

Incorporated in 2015 under the name of Allestro E-Service Private Limited, the company originally intended to market and sell footwear, clothes, and bedsheets online. However, financial records show that it generated zero revenue for four financial years until 2023. This meant that the firm was not doing its stated business for nearly half of its existence.

In 2023, nearly two years after the US imposed sanctions, the firm rebranded as Allestro Aero Solutions Private Limited. It was now in the business of selling, fabricating, buying and assembling aviation parts. The shift was lucrative. Compared to its zero revenue in FY 2021-22 as a garment seller, Allestro Aero Solutions made Rs 25.9 crore (2.8 million Euro) last year as a dealer of aviation parts.

Further investigation revealed that its directors oversee multiple companies, spanning sectors from fragrances to textiles.

Visiting the company’s registered office in Delhi, three interconnected businesses were identified with offices in the same building in central Delhi’s Connaught Place. When approached for comment, management at Allestro Aero Solutions declined. Dinesh Suri of GTC Fragrances Private Limited, a company linked to Allestro and based in the same building, responded to questions about Allestro’s trade with Russian firms. “None of our companies do illegal trade. We are doing a perfectly legal business. Whatever the issues, let the Indian government take the lead,” said Suri.

 These sanctions were imposed during the former US President Biden administration. Given President Trump’s close ties with his Russian counterpart, a shift in US policy may ease pressure on Indian firms linked to Russia is likely to abate. 

But while this season lasted, all was fair game.

‘Sanctions evasion’ targets

On 30 October 2024, the US sanctioned Ascend and its two directors for being part of “sanctions evasion” networks and exporting hundreds of shipments to companies in Russia, including US-origin aircraft components.

Corporate filings show Ascend’s revenues spiked from 72 million Rupees in 2021 to 985 million Rupees (€10.8 million) last year. This coincided with significant sales to Russia, which US authorities claim included the transfer of over $200,000 worth of high priority components.  

The sanctions were part of a wave of action from the State, Treasury and Commerce Departments intended to “disrupt support for Russia’s military-industrial base” by targeting international intermediaries. Three of the 12 Indian firms identified here as supplying western aircraft parts to Russia were designated.

European Union authorities, however, are yet to penalise any of them.

The European Commission said it closely monitors attempts to circumvent sanctions, but had not found any cases involving aviation firms in India.

“While no concrete evidence of such circumvention involving Indian intermediaries has been found so far, the Commission remains vigilant and will take action if and when such evidence comes to light,” said Olof Gill, its spokesperson for financial services.

From the Côte d’Azur to Moscow

Among the other Indian companies targeted by the US late last year for having “diverted or attempted to divert” aircraft parts to Russia was Agrim Aviation. Investigate Europe reporters found data showing it had been supplying a now-sanctioned military contractor.

More than 160 shipments from western companies went via the Delhi-based firm to Russia between January 2023 and September 2024, customs data shows.

Almost all of these cargoes appear to have gone to Utair, a Russian civilian airline sanctioned by the EU in December 2024 for providing support to the Russian Armed Forces. The EU said Utair aircraft had been “transporting military personnel assigned to the combat zone … conducting flights within Russian-occupied Ukraine”. 

Among the shipments were generators dispatched from a Dutch helicopter business, a pair of propeller blades courtesy of a UK spares supplier and six engines from a warehouse in Florida.

In one case, parts worth almost $250,000 appear to have been exported by boutique charter service Heli Air Monaco. Ordinarily the company ferries people between airports in the Côte D’Azur and offers its customers exclusive wine tours. But since the Ukraine war, it has found a new revenue stream: selling helicopter parts, many made by Airbus, to India, customs data indicates.

Heli Air Monaco exported 10 cargoes from France to Agrim Aviation, including a delivery of booster pumps needed to move fuel to an aircraft’s engines in January 2024. All later went to Utair Engineering, part of the synonymous airline placed under EU sanctions the same year. Heli Air Monaco denied any wrongdoing. Despite several attempts to contact the company, they did not provide any further details by the time of publication.

There is no suggestion that these or other western firms were aware that their shipments to India would end up in Russia.  

‘Illicit procurement network’

Determining if sanctions evasion has occurred can be very difficult — a difficulty that some companies seek to exploit, Maria Shagina of the International Institute for Strategic Studies explains.

“Some companies indeed don't know where their products end up; others use it as a pretext to circumvent sanctions. Poor supply chain visibility, particularly in the second and third tier, is a key problem,” she said. 

Since 2022, circumvention hubs have sprung up across Asia and the Middle East, with authorities engaged in a game of whack-a-mole trying to limit intermediary routes from feeding aircraft parts to Russia.

A recent US court case shows how India has become an increasingly important route for Russian companies seeking to access restricted items.

US prosecutors allege the owner of Arezo Aviation Services, Sanjay Kaushik, imported critical aircraft parts worth millions from the US to India, before re-exporting them to Russia as part of an “illicit procurement network” also involving an Austrian company.

Kaushik was arrested in Miami in October and faces up to 60 years in prison if found guilty. He has denied any wrongdoing.

One high-risk product traded by the Austrian firm, according to US court documents, was a $500,000 adaptive flight display, which provides pilots with real-time flight data. The part was shipped from the US to Arezo in August 2023, before being sent on to a small Russian buyer called PDS Avia.

Private emails accessed by US special agents show that Kaushik and his Austrian partner, stood to make $15,000 each in commission on the trade. A Russian broker would get $30,000. Responding to Investigate Europe, the Austrian company denied involvement in any illegal transactions, nor that they knew any parts would be going to Russia.

High-priority parts reach Russia

Within the dataset, more than 200 items were labelled with customs codes flagged on a joint G7 list of so-called Common High Priority goods, described by authorities as critical to “Russian military systems”or having been found on the battlefield in Ukraine. The parts included navigation equipment, generators, radars and an array of small mechanical elements.

The codes cover a broad range of items and original shippers of the parts, as specified in customs data, included Airbus subsidiary Satair, Boeing and Gulfstream, among others.

In October 2023, a component needed to transfer fluids and gases in an aircraft left Satair’s Copenhagen facility. The declared custom code of the hose assembly had been added to the high priority list a month earlier. Within a week, it had moved from Ascend Aviation in Delhi onto Aeroflot, Russia’s state-owned airline.

Reporters were able to trace the exact movement of this and hundreds of other goods by cross-checking the bill of lading number (a unique code assigned to cargoes) and other identifiers in import and export data, such as serial and product numbers.

The Italian connection

In some cases, cargoes tracked through India went to sanctioned Russian enterprises. 

Venice-headquartered Superjet International started as a joint venture between Italian defence giant Leonardo and Russia’s Sukhoi. On paper, it is now 90 per cent owned by Russian company United Aircraft Corporation (UAC). Leonardo, which is itself part-owned by the Italian state, retains at 10 per cent stake.

After the outbreak of war in Ukraine, Italian authorities froze all Superjet assets owned by UAC. The company, sanctioned by the EU in March 2022 for its military links, is majority-owned by the Russian state.  

As a result, the Italian government and Leonardo assumed temporary management control of Superjet in September 2022, with Leonardo maintaining a presence on its board. 

In spite of the changes, some Superjet products have still ended up in Russia. On 27 March 2024, the firm sent a side stick unit, a critical cockpit component valued at $400,000, to Allestro Aero Solutions in India. The part, which falls within the high priority list, was re-exported to Moscow for collection by Rapart Services, a company ultimately owned by UAC.

Sanctioned by the EU in 2022 for its links with “Russia’s defence and security sector”, Rapart has acquired more than $3 million of parts from India that originally came from Superjet, analysis of customs data suggests. 

Responses

Despite multiple contact attempts, none of the companies at the centre of this article responded to requests for comment on its findings, apart from Boeing, Airbus and Superjet.

Boeing said only that it had “suspended all major operations in Russia, including providing parts, maintenance and technical support for customers” in March 2022. The company failed to answer a series of detailed questions sent by Investigate Europe. 

Airbus provided an equally brief response. “Airbus and Satair are acting in compliance with the laws and regulations and are actively committed to prevent sanctions circumvention and diversion,” a spokesperson said. 

Detailed queries were sent to the Indian Ministry of External Affairs, but no response has been received so far. None of the Indian companies named in this story responded to detailed emailed requests for comment by the time of publication.

Superjet International said it operates in full compliance with regulations and “has not sent any shipment to Russia” since sanctions were introduced. The firm said that all its contracts included a “no export to Russia” clause, adding that it was investigating the findings and had temporarily suspended sales to Allestro Aero Solutions. 

‍The investigation was led by Investigate Europe, a journalism team which produces cross-border investigations. This story is being published with media partners in 11 countries, including The Reporters’ Collective (India), Altreconomia (Italy), Arte (France), Dagsavisen (Norway), Danwatch (Denmark), Der Standard (Austria), Disclose (France), the Guardian (UK), InfoLibre (Spain), Frontstory (Poland), Meduza (Russia) and NRC (Netherlands).‍