The United States has imposed sanctions on an Indian firm that, in partnership with a Russian company, is part of a consortium managing Sri Lanka’s Mattala Airport, according to official records.
The U.S. Department of the Treasury recently sanctioned India-based Shaurya Aeronautics Private Limited (Shaurya) among 275 individuals and entities alleged to be supplying advanced technology and equipment to Russia in support of its military efforts.
“This action targets individual actors and broad sanctions evasion networks across 17 jurisdictions, including India, China, Switzerland, Thailand, and Türkiye,” the U.S. Treasury Department stated.
Along with disrupting global evasion networks, the sanctions also target Russian importers and producers crucial to the country’s military-industrial base.
The consortium of Shaurya Aeronautics and Russia’s Airports of Regions Management Company secured a 30-year contract to manage Sri Lanka’s Chinese-built Mattala Airport. The prior Sri Lankan administration under former Prime Minister Ranil Wickremesinghe had approved the deal despite U.S. advisories about sanctions on a key partner of the Moscow-based firm.
“Shaurya Aeronautics has sent high-priority dual-use technology to Russia, including radar, radio navigational aid, remote control equipment, and electrical switching apparatus,” the U.S. Treasury Department added. Shaurya has been sanctioned under Executive Order 14024 for operating within the Russian technology sector.
Sri Lanka to Review Deal
In July, former Aviation Minister Nimal Siripala de Silva stated that the U.S. had informed Sri Lanka that a major stakeholder in Russia’s Airports of Regions Management Company had been sanctioned by the U.S. Treasury in 2018 over alleged involvement in the 2016 U.S. elections. However, Sri Lankan authorities investigated and considered it “only a rumor” after U.S. officials could not provide concrete evidence.
Prior to the September 21 presidential election, former Foreign Minister Ali Sabry indicated the deal would undergo a review. Newly elected President Anura Kumara Dissanayake’s administration has confirmed plans to re-evaluate the agreement following the November 14 parliamentary elections.
Constructed at a cost of $209 million, Mattala Airport was previously known as the “world’s emptiest airport” due to a shortage of flights, incurring annual losses of 3 billion rupees (about $10 million). Strategically located near Hambantota on Sri Lanka’s southern coast—where China operates a port on a 99-year lease and where Sinopec is building a $5 billion refinery—the airport primarily serves as a backup when the main Katunayake airport near Colombo is unavailable.
Airports of Regions, the Russian company in the consortium, is a significant player in the Russian airport sector. Until 2021, the primary investor was Viktor Vekselberg’s Renova Group, which was sanctioned by the U.S. in 2018 for alleged interference in the 2016 U.S. election. However, Vekselberg reportedly transferred control to a former Renova executive in 2021.
Following the COVID-19 lockdown, Mattala Airport saw increased use to attract Russian and Ukrainian tourists. The 2015-2019 government previously offered the airport to India to promote Indian tourism, although those discussions were unsuccessful.
