In a low-key office building in Mumbai’s Andheri district, Shreya Life Sciences, a mid-sized pharmaceutical company, has emerged as an unexpected player in Russia’s access to high-tech equipment amid US and European Union sanctions.

According to a Bloomberg investigation, Shreya Life Sciences has become a significant intermediary in the supply of Nvidia chips to Russia, raising concerns among Western nations about India’s growing role in facilitating Moscow’s access to dual-use technology.

Analyzing data from ImportGenius and NBD, Bloomberg News found that Shreya exported more than 1,000 Dell PowerEdge XE9680 servers — each equipped with Nvidia’s H100 processors optimized for artificial intelligence — between April and August 2024.

These advanced servers, valued at around $300 million, were delivered to Russian trading firms Main Chain Ltd. and IS LLC, despite being on Western export restriction lists due to potential military applications.

Founded in 1995 by CEO Sujit Kumar Singh to distribute pharmaceuticals in post-Soviet Russia, Shreya’s move into technology exports represents a notable diversification from its core business. The company capitalized on demand for restricted products as traditional suppliers pulled out after Russia’s invasion of Ukraine in 2022.

A key aspect of Shreya’s recent operations involves Malaysia, which has become the source for much of the technology that is re-exported to Russia. Trade records show that Shreya imported 1,407 Dell servers from Malaysia between March and August 2024, later diverting them to Russia.

While trading with Russia is not illegal for Indian companies – given India’s non-participation in US or EU sanctions – Shreya’s transactions have drawn scrutiny from Western authorities. Visits by US and EU officials to India highlight the urgency of closing the loopholes that allow sanctioned technology to reach Russia.

In a notable warning this summer, US Treasury Assistant Secretary Wally Adeyemo warned Indian business leaders about the potential for sanctions on entities that support Russia’s military sector.

The Indian government, which has historically relied on Russian military hardware and increased oil imports from Moscow, has addressed these concerns selectively. According to Bloomberg, Indian authorities have investigated local companies providing dual-use technologies, but have concluded that the problem is resolved; It appears that Shreya Life Sciences was not included on any flagged list.

As Shreya expands its footprint in the technology trade, its financial ties to Russian state entities further underscore its dependence on Russia. The company’s main lender, Promsvyazbank—a state-owned bank in Moscow—has consistently delayed repaying Shreya’s loan.

Promsvyazbank’s ties to Russia’s defense industry have led to sanctions against its management, including Peter Fradkov, the son of a former head of Russia’s Foreign Intelligence Service.

Shreya’s complicated history, marked by a near-bankruptcy in 2015 due to previous sanctions and a devaluation of the ruble, along with questions about the quality of its pharmaceuticals, raises additional scrutiny as it ventures into high-stakes international trade.

The company began exporting computer hardware in September 2022, initially working with entities that later appeared on US sanctions lists. After breaking these links, Shreya moved on to export to the Main Chain, which is currently unsanctioned.

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