India’s tightrope: How Russian oil buys and joint drills are testing ties with the EU

EU chief Kaja Kallas warns that India’s defence exercises with Moscow and continued Russian oil imports “stand in the way of closer ties” — forcing New Delhi to juggle energy security, defence needs and the prize of deeper EU trade.

What's Actually Happening?

On Wednesday the European Union’s top diplomat, Kaja Kallas, told reporters that India’s participation in military exercises with Russia and its ongoing purchases of Russian oil are obstacles to a closer EU-India partnership. The blunt assessment puts a spotlight on a longer-running balancing act: New Delhi wants close economic links with the EU while maintaining strategic and energy ties with Moscow. That balancing is now causing friction just as both sides talk about upgrading trade, investment and cooperation on technology and climate.

Here's the Breakdown

• Key development: The EU publicly signalled frustration that India’s defence engagement with Russia and its oil imports could limit deeper cooperation with the bloc.

• Background context: Since Russia’s 2022 invasion of Ukraine, many Western countries imposed sanctions and reduced energy ties with Moscow. India, citing energy security and favourable pricing, increased purchases of discounted Russian crude. India also continues defence engagement with Russia through training and exercises — part of a decades-long security relationship.

• Current situation: The EU is nudging India to consider geopolitical alignment as part of an expanded partnership, while New Delhi says it will protect strategic autonomy — pursuing secure energy supplies and military readiness even as it grows trade ties with the EU.

• Primary impact: The comment from Kaja Kallas transforms a quiet diplomatic irritation into a headline: it raises the prospect that political differences — not just trade numbers — could slow a major economic relationship.

• Public interest: Indians are talking about the potential hit to exports, investments and tech collaborations with the EU, and whether fuel prices, defence purchases or international credibility could change depending on policy choices.

The Bigger Picture

• Immediate effects: Possible cooling in high-level diplomatic warmth, delays in bilateral talks on trade or tech, and sharper public scrutiny of India’s energy and defence decisions.

• Future implications: If the EU pushes linkage between geopolitical behaviour and partnership depth, India may face harder choices — accept constraints on Russian ties or risk slower progress on deals that create jobs and technology transfer. The dynamic also matters for multilateral forums where EU, India and other partners collaborate on climate, supply chains and regional security.

What This Means for You

• Direct impact: Business owners and investors could see slower negotiations on market access, tech collaboration or joint research with EU partners. Consumers might face indirect effects if energy sourcing shifts and fuel prices rise, or if new trade barriers add cost to imports and exports.

• Bottom line: India’s policy choices on Russian oil and defence are not just diplomatic signals — they shape trade timelines, investment flows and India’s image as a strategic partner to Western democracies.

The Real Story

At stake is more than a single diplomatic rebuke. The EU wants a dependable partner that shares, or at least does not contradict, its stance on major geopolitical questions. India insists on strategic autonomy — the freedom to choose suppliers and defence partners based on national interest. That tension is now playing out publicly. For New Delhi, the calculation is pragmatic: discounted Russian oil helped moderate import bills and inflation at a critical time, while defence ties with Russia remain important for training and legacy hardware. For Brussels, continued closeness to Moscow risks diluting the value of a strategic partnership built on shared values and coordinated responses. The outcome will shape not only commerce and investment, but India’s diplomatic room to manoeuvre across the Indo-Pacific and Europe.

What's Coming Next?

• EU-India talks to watch: outcomes of upcoming summits or ministerial meetings where trade, tech and security agendas could be revisited.

• Energy signal to monitor: whether India diversifies away from Russian crude or maintains volumes — any change will ripple through global oil markets and domestic fuel prices.

• Domestic political debate: expect sharper exchanges between the government (defending strategic autonomy) and opposition parties (likely arguing for clearer alignment with democratic partners), which could influence policy choices before key diplomatic dates.