The European Union (EU) has expressed concerns about the influx of refined petroleum products, sourced from Russian crude oil, from India into the European market. The EU asserts that this undermines the very essence of economic sanctions against Moscow, which were instituted to diminish its capacity to finance the ongoing conflict in Ukraine.
During his visit to India, the EU’s Executive Vice-President and Trade Commissioner, Valdis Dombrovskis, revealed that large volumes of these oil products are entering Europe. He criticised Russia for weaponizing its energy and food resources to perpetuate its aggression on Ukraine.
This includes Russia’s move to withdraw from the Black Sea grain initiative and block Ukraine’s grain exports globally.
Following Russia’s incursion into Ukraine last February, Western nations imposed multiple sanctions, including a G7-plus price cap on Russian oil. The aim? To impede Russia’s war financing capabilities.
Yet, despite these measures, India has significantly increased its imports of discounted Russian crude over the past year. Dombrovskis highlighted that nations like China and India haven’t joined the sanctions, with Russia actively exploring alternative markets to make up for the lost European market share.
Addressing India’s burgeoning trade with Russia, especially the oil sector, Dombrovskis said, “We observe emerging trade patterns. We’ve noticed a swift rise in refined oil imports in the EU from India. If produced from Russian oil, it defeats the West’s intent to curb Russia’s war efforts.”
On the brighter side, the EU aims to deepen economic ties with India. The EU is India’s second-largest trade partner, with trade worth 120 billion euros last year, equating to 10.8% of India’s total trade. Conversely, India accounts for 2% of the EU’s total trade. The EU-India strategic partnership is pivotal, especially in today’s charged geopolitical climate.
Dombrovskis emphasised the importance of India and the EU collaborating to address global challenges. As the world’s two largest democracies, the need for a cohesive approach is paramount.
Currently, India and the EU are engaged in negotiations over three agreements: a free trade pact, an investment protection agreement, and a geographical indications agreement.
