The European Union and the United States publicly declare their support for Ukraine, but in practice their actions often turn out to be contradictory. On the one hand, EU countries provide Ukraine with financial assistance, weapons, and political support. On the other hand, they continue to look for ways to maintain economic ties with Russia, justifying these actions with energy needs or the desire to avoid socio-economic upheavals.
The situation with Gazprombank vividly illustrates this duality. Currently, the EU and the United States are considering the possibility of easing sanctions against this financial institution, which remains a key channel for payments for Russian gas.
“At the same time, the European Union cannot agree on the 15th package of sanctions against Russia. Internal disputes, in particular between the Czech Republic and Slovakia, have thwarted the adoption of restrictions on the import of Russian oil products,” says Alona Lebedieva, owner of the Ukrainian multi-profile industrial and investment group of companies Aurum Group.
These disagreements call into question the true priorities of individual EU countries and undermine overall unity. Formal support for Ukraine coexists with the actual preservation of financial flows that strengthen the Russian economy and, ultimately, finance the war.
However, intra-European conflicts are not the only challenge to the West’s sanctions policy. There are also complex global chains of sanctions evasion involving other countries. For example, India has become a key intermediary in the processing of Russian oil. Since the beginning of Russia’s full-scale aggression against Ukraine, Russian oil exports to India have increased by 900%: from 4.5 million tons in 2021 to 82 million tons in 2023. Subsequently, oil products processed at Indian refineries are re-exported to EU countries, effectively making India a “bypass” for Russian energy resources.
“A significant part of the supplies is carried out by Putin’s so-called “shadow fleet”, which makes India an unwitting or intentional participant in financing the Russian military machine,” notes Alona Lebedieva.
The Indian-Chinese presence in the Russian oil market has become so significant that now 78% of Russian oil exports fall on China and India (compared to 32% in 2021).
“Moreover, India has become the second supplier of dual-use technologies to Russia after China. This includes microchips, electronic circuits, machines and other high-tech equipment. These supplies help the Russian military-industrial complex mitigate the impact of Western sanctions,” Lebedieva explains.
As Bloomberg previously reported, the Indian company Shreya Life Sciences is acting as an intermediary in the supply of powerful Nvidia artificial intelligence chips to Russia, the source of which was Malaysia. Thus, India not only helps to circumvent energy restrictions, but also helps the Kremlin obtain technologies that are critical for the army and industry.
“Europe must understand that the compromises that allow Russia to maintain its profits and provide high-tech products come at an extremely high price for Ukraine – in lost human lives and destroyed infrastructure. Real support requires not only the formal introduction of sanctions, but also ensuring their effectiveness and blocking all shadow channels of financing of the aggressor,” concludes Alona Lebedieva.
If Ukraine’s key partners continue to balance their economic interests with fundamental values, sanctions pressure will remain weak and ineffective. Ultimately, this threatens not only the freedom and independence of Ukraine, but also trust within the EU and the stability of the international order.
News by Businessnewsrelease.com
