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Can there be more pain for India if the US, EU join hands?
As the Russia-Ukraine war continues into its fourth year, the United States and the European Union are preparing a new wave of economic measures aimed at tightening the financial noose around Russia. Central to this strategy is the deployment of secondary sanctions, targeting not just Russia directly, but also countries and entities that continue to do business with it, especially in the energy sector. These sanctions mark an escalation in the West’s economic warfare against Russia. But they also risk deepening global economic fractures, especially with strategic partners like India and China, and could expose the contradictions within the EU’s own policy landscape.
Unlike primary sanctions, which ban a country’s own companies and citizens from engaging with sanctioned entities, secondary sanctions aim to punish third-party countries or businesses that facilitate or benefit from such engagements. The idea is to cut off Russian revenues even where Western influence doesn’t directly reach. These measures could include freezing assets, cutting off access to Western banking systems, banning reinsurance for oil tankers, and placing tariffs on countries that continue trading with Russia.
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