By Matt Underwood Revealing that the very nations criticizing India are themselves indulging in trade with Russia, says India on Trump’s tariff remarks. This situation is, to put it mildly, complicated, and it’s easy to see why the comments on tariffs and trade with Russia are raising eyebrows. The core of the issue is this: India is facing criticism, particularly from Western nations, for its continued trade with Russia, yet these very same critics are, in various ways, also involved in economic exchanges with Moscow. It’s a classic case of “do as I say, not as I do,” and it’s understandable why India is pointing this out.
We can’t ignore the broader context. The world is trying to limit Russia’s ability to fund its war in Ukraine, and one major way to do that is to reduce its income from energy sales. The idea is to make it harder for Russia to finance its military operations. However, the challenge is that simply cutting off all trade with Russia is easier said than done. Such drastic measures could trigger price spikes and potentially make it difficult to isolate Russia without causing widespread economic damage.
Instead of completely halting trade, one suggested strategy is to enforce a lower price for Russian oil. This approach would benefit the countries buying the oil, prevent a major surge in global oil prices, and significantly cut into Russia’s profits. The oil price cap was designed to achieve this, though perhaps not with enough force. The argument against targeting India and China specifically is that it’s counterproductive.
Let’s face it, the US wants strong ties with India mainly to counter China. India, on the other hand, has its own priorities and strategic interests. It makes sense for India to continue importing oil from a major energy producer located within its geographic sphere. The war in Ukraine, while a global concern, doesn’t have the same immediate impact on India as it does on European nations. Pointing fingers at India for this is essentially hypocritical, especially when one considers the hypocrisy of it all.
Consider the figures. The EU-Russia trade in goods, in 2024, reached €67.5 billion, with additional service trade estimated at €17.2 billion in 2023. This is a substantial amount. In contrast, India’s total trade with Russia is smaller. However, what adds fuel to the fire is how it has evolved. The EU has reduced trade with Russia while India has increased trade significantly. This is where the optics become particularly sensitive.
The EU has indeed been working hard to lessen its dependence on Russian gas, but it’s a process that takes years, requiring new infrastructure. The argument that India is just “profiteering” from a situation is gaining ground, because India not only buys crude for domestic use but also processes and exports it, often to the very countries doing the criticizing.
The core of the issue is not necessarily that trade with Russia is occurring, but that some are seemingly trying to evade sanctions, like the price cap. It looks as though some Indian companies are becoming involved in laundering sanctioned Russian products.
It’s also important to remember that countries often prioritize their own interests. The US is buying Uranium, directly from Russia. Why is that not funding the war but oil is? There seems to be a double standard at play here.