For the first time, India is taking punitive action against an overseas defense company that could see Turkish firm Anadolu Shipyard banned from doing defense-related business in India.

The Turkish company’s defense ties with Indian rival Pakistan have grown recently, and the latest move could impact the Indian Navy’s $2 billion fleet support ships program, for which state-owned Hindustan Shipyard Limited has chosen Anadolu Shipyard as its technology partner.

An Indian Ministry of Defence official said the punitive action would bar Anadolu from carrying out any business with Hindustan because such a partnership could have grave consequences for India’s security.

Last week Anadolu launched the first of four anti-submarine corvettes for the Pakistan Navy, and the shipyard is expected to officially ink a partnership agreement with Hindustan under which would be built five fleet support ships for the Indian Navy.

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