in the world authorized to receive both military and dual-use items under a Validated End User program.” Moreover, the United States offered a menu of “defense options” to India, including the Guardian UAV, aircraft carrier technologies, the Future Vertical Lift program, and F-18 and F-16 fighter aircraft.

Russia is losing its competitive advantage as its “cheap and deadly” gear faces an uphill battle for market share since Western producers are better positioned for the higher-end gear consumers like India or China increasingly need. As Russian firms pivot to higher-end gear in their trade with China, Beijing is also expanding its exports into markets in which Russia has been active, including Algeria, Indonesia, Nigeria, and Venezuela. India and Vietnam are the only important markets where Russia is not yet challengedof instruments : Directive 3 and military and defense-related restrictions. Under Directive 3, US individuals, companies and other entities (including foreign branches) are prohibited from transacting in, providing financing and other dealings in new debt of longer than 30 days maturity of designated defense companies by the SSI (Sectoral Sanctions Identification) List of Office of Foreign Assets Control (OFAC) Initially, the only designated company was Rostec and its subsidiaries but subsequently other Russian military majors such as Rosoboronexport and Russian Helicopters were added on the sanctions list.

The second instrument consists in restrictions for the export of defense articles and defense services to Russia, and restrictions on exports, re-exports or transfers to Russia of items intended, entirely or in part, for a military end use or military end user