An Indian company exported over $1.4 million worth of HMX, a powerful explosive chemical with military applications, to two Russian companies in December 2023, according to Indian customs data reviewed by Reuters. This took place despite multiple warnings from the United States, which has asked allies not to support Russia’s war in Ukraine.

The chemical involved, HMX or octogen, is classified as a “high explosive”. It is used in missile warheads, torpedoes, rocket motors, and plastic-bonded explosives, as per information from the U.S. Pentagon’s Defense Technical Information Center and other military research programs.

The U.S. government has identified HMX as a critical component for Russia’s defense production and warned that any company or financial institution facilitating its supply to Russia could face sanctions.

The shipments were made by Ideal Detonators Private Limited, a company based in the Indian state of Telangana. Two separate shipments were recorded: one worth around $1 million was delivered to Promsintez, and another valued at $405,200 was sent to High Technology Initiation Systems (HTIS). Both shipments were unloaded in St. Petersburg, according to the customs data.

Promsintez is a Russian explosives manufacturer which, according to an official from Ukraine’s SBU security service, has connections with Moscow’s military. The Ukrainian official also said that in April 2024, Ukraine carried out a drone attack on a factory owned by Promsintez.

HTIS, the second buyer, is said to focus on explosives for surface and underground mining and engineering projects. Its website lists it as a subsidiary of Maxam, a Spanish explosives company headquartered in Madrid.

Maxam is majority-owned by Rhone Capital, a private equity firm based in New York and founded by former bankers from Goldman Sachs and Lazard. A source familiar with Maxam told Reuters that the company is currently in the process of divesting its Russian operations, and said that HTIS operates independently.

An Indian official, who confirmed the shipments, said that while HMX is widely used in defense, it also has some limited civilian uses. India’s foreign ministry, in a statement, said that all dual-use exports are assessed as per India’s international non-proliferation commitments and are handled through a robust legal and regulatory framework.

The U.S. State Department said it has repeatedly warned India and other countries that doing business with Russia’s military industry could lead to U.S. sanctions. A spokesperson said the U.S. maintains a full and frank dialogue with India as a strategic partner, including on India’s ties with Russia.

Earlier in July 2024, U.S. President Donald Trump warned that countries continuing to buy Russian crude oil could face 100% tariffs.

Reference: Reuters

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