India Refutes Allegations of HAL Diverting Sensitive Technology to Russia

The Indian Ministry of External Affairs (MEA) has categorically rejected a recent report by The New York Times alleging that Hindustan Aeronautics Limited (HAL) diverted sensitive technology to Russia. The MEA labeled the report as "factually incorrect and misleading," asserting that it distorts facts to fit a particular political narrative.​

The MEA emphasized that HAL has consistently adhered to international regulations concerning strategic trade controls and end-user commitments. They highlighted India's robust legal and regulatory framework governing strategic trade, which guides the overseas commercial activities of its companies. The ministry also urged reputable media outlets to conduct thorough due diligence before publishing such reports.​

Details of the Allegations

According to The New York Times, a British aerospace firm, HR Smith Group, allegedly shipped restricted technology to HAL between 2023 and 2024. The report suggests that HAL subsequently transferred similar equipment to Russia's state-owned arms agency, Rosoboronexport. Customs records cited indicate that HAL received 118 shipments of restricted technology worth nearly $2 million from HR Smith's subsidiary, Techtest, during this period. Concurrently, HAL reportedly made at least 13 shipments of similar components to Rosoboronexport, with payments totaling over $14 million. These components are described as dual-use technology, flagged by British and American authorities as critical to Russia's military operations in Ukraine.​

India's Defense Trade Dynamics

India maintains a longstanding defense relationship with Russia, characterized by collaborations such as the licensed manufacturing of AL-31FP engines for the Su-30MKI fighter jets. In November 2024, a delegation from HAL visited Russia to finalize a contract for producing 240 of these engines, underscoring the depth of Indo-Russian defense cooperation. This collaboration aligns with India's strategic objective of enhancing indigenous defense production capabilities.​

Concurrently, India has been expanding its defense partnerships globally. The Ministry of Defence signed a contract with HAL in December 2024 for the procurement of 12 Su-30MKI aircraft, valued at approximately ₹13,500 crore. These aircraft feature significant indigenous content, reflecting India's commitment to self-reliance in defense manufacturing.​

International Scrutiny and India's Stance

India's defense trade practices have attracted international attention. Reports indicate that India has become a significant supplier of restricted critical technologies to Russia, with exports including microchips and machine tools. U.S. and European officials have noted these developments, highlighting the complexities in efforts to regulate exports fueling military activities.​

In response to sanctions imposed by the U.S. on several Indian entities for allegedly supporting Russia's military-industrial base, the MEA stated that it is in communication with U.S. authorities to clarify the issues. The ministry emphasized that the sanctioned transactions and companies are not in violation of Indian laws and reiterated India's robust legal framework governing strategic trade and non-proliferation controls.​

The Indian government has firmly denied the claims made in The New York Times report, reaffirming HAL's compliance with international trade regulations. India continues to navigate its defense relationships and trade practices amidst global scrutiny, emphasizing adherence to its legal frameworks and international commitments.