Vantage | Why Europe's charge of Indian firms 'helping' Russia doesn't quite add up

A threat of sanctions is looming over India; the European Union’s complaint remains the same as before—that Indian firms are helping Russia. Brussels has drawn up sanctions against 21 new entities. Some of them are in Thailand, Sri Lanka, and Turkey. The list also includes three Chinese companies and one Indian company. Until now, no Indian or Chinese firm has been hit by sanctions. Not even over the war in Ukraine, but this proposal could change that. It has already been prepared by EU officials. The next step is for the members to approve it. If every member agrees, the sanctions will be imposed. You can expect a result before February 24, which is the anniversary of Russia’s invasion. Now, this move raises two questions. One, what have these companies done? And two, how will the sanctions affect them? The details are not clear yet; the EU document says: “It is appropriate to include on that list certain other entities in third countries that indirectly support Russia’s military and industrial complex.” So that is the charge. Maybe these companies are selling electrical goods or maybe spare parts; a lot of them have dual use, meaning they have commercial and military value. So the EU wants to deter that trade now, but how will the sanctions affect these companies? Well, Europe will stop dealing with them. No trade. No exchanges. There is no market access. It could be a big blow to these firms. India hasn’t officially reacted to this news, but we understand that New Delhi is studying the reports. They are also seeking clarity. EU officials are visiting India next week for the Raisina Dialogue, organised by the Ministry of External Affairs. Chances are, this issue will be raised, but Europe’s policy against Russia is very confusing. This is because they still buy a lot of stuff from Russia. In 2023, Russian exports to the EU were worth 85 billion dollars. Now, this might be 68 percent down compared to 2022. So the EU is trying to cut down, but look at India’s trade with Russia. Total worth of which is just 50 billion dollars.

Yet, somehow, as per them, India is helping the Russian war machine. This is neither boy math nor girl math, but Euro math. Europe is now buying a lot of refined oil products from India; it was 111 thousand barrels in 2022, which is now 231 thousand barrels. That is a 115 percent rise in imports. Now, you may think, What’s wrong with that? Europe is not buying from Russia but from India. India gets almost 40 percent of its crude oil from Russia; it is refined here and converted into different products, which are then exported to the world. So chances are, Europe’s imports from India have Russian crude in them. However, Brussels has done nothing so far. It looks like all’s fair when oil is involved. Or gas—Russia still makes up 15 percent of Europe’s gas imports, which are pipeline gas plus LNG. The EU ports also help re-sell some of this. Yet, somehow, India is helping Russia—the double standard is quite evident. These sanctions are an attempt to hide Europe’s own failures. There are some 19 thousand sanctions on Russia; virtually every industry has been hit, yet the Russian economy is growing. Russia’s GDP was 3.6 percent up last year—that’s higher than countries like Germany and Britain. Plus, the war isn’t going anywhere; military aid is stuck in the US Congress. President Zelenskyy is at odds with his army. The top general has already been fired, and the battlefield is frozen. So this is desperation. The attempt to do something on the war’s second anniversary could backfire. Both China and India are key markets. The India-EU trade is worth 135 billion dollars. The China-EU trade is almost $1 trillion. Does Brussels want to upset that equation? This has to be seen in the near future. Views expressed in the above piece are personal and solely that of the author. They do not necessarily reflect Firstpost_’s views._ Read all the  Latest News ,  Trending News ,  Cricket News ,  Bollywood News , India News  and  Entertainment News  here. Follow us on  Facebook ,  Twitter  and  Instagram .