Adani airports stop processing export cargo to Russia, 150 tonnes delayed

MUMBAI: Adani Airport Holdings Ltd (AAHL), which operates eight airports including Mumbai, Navi Mumbai and Ahmedabad, has stopped processing export cargo bound for Russia, leaving about 150 tonnes backlog of air cargo, primarily pharmaceuticals, machinery and spare parts, awaiting clearance for the past 10 days.“Among the cargo held up are government-to-government supplies that move regularly on this route under the special and privileged strategic partnership reaffirmed at the highest level by India and Russia,” said a source.The affected shipments are those booked on Russian national carrier Aeroflot, which flies daily from Delhi and five times a week from Goa, as well as non-scheduled Russian Freighter carrier Volga-Dnepr. Aeroflot doesn’t operate scheduled flights to/from Mumbai or any other AAHL-managed airport. But cargo from Mumbai and other parts of western and southern India bound for Russia are routed via Mumbai because of availability of export registration facilities.At Mumbai the cargo undergoes export processing: cargo is brought by road and is granted entry into the airport cargo complex, where it is accepted, security-screened and cleared by customs. Thereafter, the cargo is flown to Delhi or Goa on domestic carriers such as IndiGo or Blue Dart, or transported by road via bonded trucks to these airports for loading onto the Russian flights.Shubham Singh, director, SW Trading, the official cargo sales agent for Aeroflot, pan India said: "Aeroflot is the only national carrier flying directly from India to Moscow daily. If this is not resolved soon, cargo moving from Mumbai will face serious disruption and the India-Russia trade lane will be affected."On Sept 23, SW Trading wrote to Mumbai International Airport Ltd (MIAL), saying its trucks had been “waiting for carting orders for the last 3-4 days but no response”. “We are paying heavy storage charges and truck detention charges therefore kindly consider our request on priority and assist,” the letter said.With no response from the airport operator, the company sought government intervention, writing to the ministries of civil aviation, external affairs, commissioner of customs and home affairs, among others. Sources said the government has begun looking into the matter and an intervention is expected soon. “When we asked why they had stopped processing exports to Russia, the officials at the Mumbai airport told us that they had orders from their headquarters,” said a source, adding that about 104 Indian companies supply medicines to Russia.The curb came days after the Adani group raised $1 billion from funds managed by US-based BlackRock. An Economic Times report said the decision was linked to sanctions imposed on Russia by the US Office of Foreign Assets Control (OFAC).In its letter, SW Trading contended that AAHL, having been appointed custodian under the Customs Act by the government, was mandated to provide cargo services to airlines without discrimination. “Refusal to handle cargo of a specific country or airline, especially a scheduled carrier is contrary to your custodial obligations,” the letter said.The cargo agent has also asked Customs to direct the airport to state in writing the specific grounds for refusing or preventing the processing of cargo booked on Aeroflot, including the precise instruction, order or document on which the decision was based. Delmos Aviation Pvt Ltd, general sales and service agent for Aeroflot too has taken up the matter with the government.You use AI every day. Now get your AI Quotient. Take the AIQ test.