Artillery shells produced by Indian arms manufacturers have been diverted by European buyers to Ukraine, despite Indian export regulations and protests from Moscow, according to eleven government and defense industry sources from India and Europe, as well as a Reuters analysis of customs data.

For over a year, munitions have been transferred to support Ukraine’s defense against Russia, according to the sources and customs data. Indian arms export rules stipulate that weapons should only be used by the declared purchaser, who could face future sales bans if unauthorized transfers occur.

The Kremlin has raised concerns about this issue on at least two occasions, including during a July meeting between Russian Foreign Minister Sergei Lavrov and his Indian counterpart, three Indian officials reported. This report by Reuters is the first to reveal the details of these ammunition transfers. Neither the Russian nor Indian foreign and defense ministries responded to inquiries. In January, Indian foreign ministry spokesperson Randhir Jaiswal stated at a press conference that India had not sent or sold artillery shells to Ukraine.

Two Indian government officials and two defense industry sources informed Reuters that India’s contribution to the ammunition used by Ukraine is minimal, with one official estimating it to be less than 1% of the total arms imported by Kyiv since the conflict began. Reuters could not confirm whether these munitions were resold or donated to Ukraine by the European customers.

Italy and the Czech Republic are among the European countries sending Indian munitions to Ukraine, according to officials from Spain and India, as well as a former executive of Yantra India, a state-owned company whose munitions are being used by Ukraine. The Czech Republic is leading an initiative to supply Kyiv with artillery shells from outside the EU.

An Indian official confirmed that Delhi is closely monitoring the situation, but, along with a defense industry executive with direct knowledge of the transfers, stated that India has taken no action to curb the supply to Europe. Most of the 20 individuals interviewed by Reuters requested anonymity due to the sensitivity of the issue.

The defense ministries of Ukraine, Italy, Spain, and the Czech Republic did not respond to requests for comment. India and the U.S., Ukraine’s main security supporter, have strengthened defense and diplomatic ties recently, driven by concerns over China, which both nations see as a primary rival. At the same time, India maintains strong relations with Russia, its top arms supplier, and Prime Minister Narendra Modi has declined to join the Western sanctions against Moscow.

India, historically the world’s largest arms importer, views the ongoing war in Europe as an opportunity to boost its emerging arms export sector, according to six Indian officials familiar with the government’s stance. Ukraine, struggling to fend off a Russian offensive near the logistics hub of Pokrovsk in the east, faces a severe shortage of artillery ammunition.

The White House declined to comment, while the U.S. State Department referred questions about India’s arms exports to the Indian government. India exported just over $3 billion worth of arms between 2018 and 2023, according to the Stockholm International Peace Research Institute. Defense Minister Rajnath Singh stated at an August 30 conference that defense exports exceeded $2.5 billion in the last fiscal year, and Delhi aims to raise that figure to around $6 billion by 2029.

NEW DELHI: On Wednesday, the Union cabinet, led by Prime Minister Narendra Modi, approved a provisional subsidy of ₹24,475.53 crore for nutrient-based phosphatic and potassic (P&K) fertilisers for the upcoming rabi (winter-sown) season. Additionally, the cabinet sanctioned new allocations for the Pradhan Mantri Annadata Aay Sanrakshan Abhiyan (PM-AASHA), a program designed to safeguard farmers’ incomes, according to Information and Broadcasting Minister Ashwini Vaishnaw.

The nutrient-based subsidy scheme provides farmers with fertilisers at prices lower than the market rate, based on their phosphatic and potassic content, with the aim of discouraging excessive use.

In India, the availability and affordability of essential fertilisers are vital for food security. These, combined with improved seeds, were instrumental in driving the Green Revolution of the 1960s.

The government offers 28 varieties of P&K fertilisers to farmers at subsidised rates through manufacturers and importers. Manufacturers sell the fertilisers at discounted prices and are later reimbursed by the government.

The cabinet also approved an allocation of ₹35,000 crore for PM-AASHA, a scheme that intervenes when market prices for farm produce plummet.

Launched in 2018, PM-AASHA includes three sub-schemes that allow state governments to purchase crops like pulses and oilseeds when market prices drop below the government’s set floor prices, protecting farmers from losses.

The cabinet-approved increase in funding for PM-AASHA will cover the entire 15th Finance Commission period, including the fiscal year 2025-26, as per a government statement.

The Union budget presented in July allocated ₹6,437 crore for PM-AASHA. In 2023-24 (revised estimates), the scheme received ₹2,200 crore, though the budget estimates initially allotted just ₹1 lakh, leaving farmers disappointed. In 2022-23, there were no funds allocated or spent on the scheme.

For greater efficiency, the government has merged two PM-AASHA sub-schemes: the Price Support Scheme (PSS) and the Price Stabilization Fund (PSF). “This consolidation will enhance implementation, ensuring farmers receive fair prices for their produce while controlling the price volatility of essential goods by maintaining availability,” an official stated.