Moscow, Oct 27 (PTI) – The Indian Business Alliance (IBA) has stated that the European Union's recent tightening of sanctions on Russia is creating new opportunities for Indian businesses to expand bilateral trade. The EU's latest package, the 19th, which was adopted on October 23, 2025, includes individual listings and economic restrictions, targeting key sectors of the Russian economy, including energy, finance, and the military-industrial complex, in response to Russia's invasion of Ukraine.

The IBA noted that the EU sanctions are having the unintended consequence of opening up new avenues for Indian businesses. As Western companies withdraw from the Russian market, Indian companies are stepping in to fill the gaps, particularly in sectors like pharmaceuticals and consumer goods. This has led to a significant increase in trade between India and Russia, which has reached a record $68.7 billion.

The EU's sanctions are designed to cut off revenue streams that support Russia's war efforts. The recent measures include sanctions on two major Chinese oil refineries and a trading unit of PetroChina, all targeted for their substantial purchases of Russian crude oil. The EU is also trying to work with G7 nations to further limit Russia's oil and gas revenues.

The IBA is actively supporting the growing ties between India and Russia. It is facilitating partnerships and providing logistical support to help Indian businesses capitalize on the opportunities created by the sanctions. Indian firms are increasing exports of engineering goods, machinery and pharmaceuticals.

The EU sanctions packages have been progressively imposed since February 2022 in response to Russia's violation of Ukraine's sovereignty. The sanctions now apply to over 1,700 individuals and 400 entities, including asset freezes and travel bans. The EU has also imposed bans on the import of Russian crude oil and refined oil products, as well as export bans on dual-use items and technology that could enhance Russia's defense and security sector.

The 18th package of sanctions, adopted in July 2025, included measures targeting Russian energy revenues, financial infrastructure and military-industrial capabilities. It lowered the price cap for crude oil and introduced a mechanism to adjust the oil price cap dynamically. It also imposed a transaction ban on several Russian banks and the Russian Direct Investment Fund.

Despite the EU sanctions, India and Russia continue to strengthen their economic ties. The IBA believes that the sanctions have created a unique opportunity for Indian businesses to expand their presence in the Russian market and boost bilateral trade. The organization is committed to supporting these efforts and fostering greater cooperation between the two countries.