My TakeIs EU ‘living in the past’ as it mulls sanctions on Indian, Chinese firms exporting to Russia?

EU’s potential sanctions on individual Chinese and Indian firms’ export of electronics to Russia will only reinforce perceptions of inequality

If pressuring Russia is the aim, past sanctions have achieved little and targeting third parties in Asia is likely to serve the EU’s purpose even less

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A worker sits on a ship carrying containers at Mundra port in the western Indian state of Gujarat. The European Union is mulling sanctions on Chinese and Indian firms’ export of electronics to Russia. Photo: Reuters

Published: 10:00am, 23 Feb 2024Updated: 10:11am, 23 Feb 2024

In recent weeks and months, a commentary that has gained prominence has been about whether India is the next growth story after China.

Estimates differ as to what extent, but most agree that the South Asian nation’s market promises to be the next best thing. Therefore, I was surprised to read that the European Union may slap sanctions on Chinese and Indian firms’ export of electronics to Russia.

That the move is being mulled two years after Russia’s invasion of Ukraine seems intriguing. All the more so, because the EU has been pursuing a free-trade agreement with India and has this week begun a seventh round of talks.

Therefore, the disconnect between the two things appears bizarre.

It is no secret that both India and China have been purchasing discounted Russian crude oil that was offered to them since the start of the Ukraine war. Western powers have in particular been displeased about New Delhi’s purchases because they see India as an ally, and its neutral stance on the conflict has often been questioned.