The European Union’s top diplomat Kaja Kallas said on Wednesday that India’s continued purchases of Russian oil and its participation in Russian military exercises “stand in the way of closer ties” with the bloc.
“Ultimately, our partnership is not only about trade, but also about defending rules-based international order,” Kallas stated while unveiling the EU’s new strategy to strengthen ties with India.
“Participating in military exercises, purchases of oil -- all these are obstacles to our cooperation when it comes to deepening the ties,” she added.
Meanwhile, Brussels reiterated its aim to conclude a free-trade agreement with India this year. The two sides are “exploring the creation of an EU-India Security and Defence Partnership,” the statement said.
The EU also vowed to “further engage with India on all aspects of countering Russia’s military aggression against Ukraine.”
The European Union and India are in the final stages of negotiating a free trade agreement both sides aim to conclude by the end of the year. Negotiations, relaunched in 2022, have gained pace since the re-election of US President Donald Trump. Faced with Trump's tariffs, both sides have sought accelerated efforts to foster new alliances.
Despite the tensions, the European Commission views India as a fellow upholder of the rules-based multilateral order, and hopes to benefit from its expected rise to become the world's third largest economy in 2030.
The EU envisages the two sides negotiating agreements on investment protection and boosting air transport, collaborating on securing supply chains, on green hydrogen, on decarbonisation of heavy industry and on research and innovation.
According to a Reuters report, they could also agree a defence and security partnership, as the EU already has with Japan and South Korea, and cooperate in projects in third countries, particularly in Africa and South Asia.
Trump has recent signalled strategic thaw in the bilateral chill with India, extending an olive branch to New Delhi. Last month, he praised his "good friend" Prime Minister Narendra Modi and expressed optimism at inking a trade deal with India soon. PM Modi also reciprocated, signalling a reset of ties, which have been strained amid the tariff pressure.
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