According to official statistics, the United States has sanctioned an Indian company that is managing Sri Lanka’s Mattala Airport in partnership with a Russian company.
India-based Shaurya Aeronautics Private Limited (Shaurya) was one of 275 people and organizations sanctioned by the U.S. Department of the Treasury last week for providing Russia with cutting-edge technology and equipment that it sorely needs to operate its war machine.
In a statement, the U.S. Department of the Treasury said, “Today’s action targets both individual actors and sprawling sanctions evasion networks across 17 jurisdictions, including India, the People’s Republic of China (PRC), Switzerland, Thailand, and Türkiye.”
“This action targets domestic Russian importers and producers of essential inputs and other materials for Russia’s military-industrial sector, in addition to upsetting international evasion networks.”
The 30-year management contract for Sri Lanka’s Chinese-built Mattala Airport has been awarded to a joint venture between Shaurya Aeronautics and the Russian Airports of Regions Management Company.
The 30-year agreement to transfer its Chinese-built airport operations to the consortium was authorized by the previous Sri Lankan government, led by former leader Ranil Wickremesinghe, even though the United States had warned of a US embargo on the Moscow firm’s major stakeholder.
“High-priority dual-use technology, such as radar equipment, radio navigational aid equipment, radio remote control equipment, and electrical apparatus for switching, has been shipped to Russia by India-based Shaurya Aeronautics Private Limited (Shaurya),” the U.S. Department of the Treasury said.
“Shaurya is being designated in accordance with E.O. 14024 for operating or having operated in the Russian Federation economy’s technology sector.”
SRI LANKA WILL EXAMINE THE DEAL
The U.S. contacted the Sri Lankan government in July, according to former Aviation Minister Nimal Siripala de Silva, to let them know that the major shareholder of Russia’s Airports of Regions Management Company had been sanctioned by the US Treasury in 2018 for allegedly meddling in the 2016 U.S. elections.
According to the former minister, when Sri Lankan authorities investigated the American claims, they concluded that they were “just a rumor” and that, in spite of requests, American officials stationed in Sri Lanka were unable “to furnish evidence.”
However, before to the September 21 presidential election, former Foreign Minister Ali Sabry had stated that the agreement would be revisited. The government of newly elected President Anura Kumara Dissanayake has also stated that it will examine the agreement following the legislative elections on November 14.
Due to a dearth of flights, the $209 million airport was formerly known as the “world’s emptiest airport.” Every year, it has been losing 3 billion rupees, or $10 million USD.
The airport is well situated near the Hambantota on Sri Lanka’s southern coast, where Sinopec is constructing a US$5 billion refinery and China has a 99-year lease on a port.
It has been used seldom when planes cannot land at Katunayaka, the nation’s primary airport, which is 30 kilometers north of Colombo.
The joint consortium’s Russian company, Airports of the Regions, is a major airport holding in Russia.
Renova Group of Companies, controlled by Viktor Felixovich Vekselberg, a Russian of Ukrainian descent who was sanctioned by the US Treasury in 2018 for alleged interfering in the 2016 U.S. elections, was the company’s strategic investor until 2021.
However, according to media sources, Vekselberg gave a former Renova top manager control of the management firm “Airports of the Regions” in 2021.
Shortly after the Covid-19 lockdown, Sri Lanka used Mattala airport to draw in more Russian and Ukrainian tourists.
This airport was made available to India during the 2015–2019 administration in an effort to increase the number of Indian cultural tourists visiting Sri Lanka. The negotiations to operate the airport with India, however, were unsuccessful.
