India in the crosshairs as EU moves to speed up Russian energy phase-out

The European Union is preparing to accelerate its plan to end reliance on Russian fossil fuels, European Commission President Ursula von der Leyen said on Tuesday after a phone call with U.S. President Donald Trump. The move comes as Washington intensifies pressure on Europe to tighten sanctions against Moscow while also targeting India and China, the largest buyers of discounted Russian oil.

Von der Leyen confirmed that the EU’s 19th sanctions package will soon be unveiled, focusing on crypto, banks, and energy, alongside a proposal to speed up the bloc’s withdrawal from Russian oil, gas, and coal. The original deadline to end Russian fossil imports was January 1, 2028, but the new timeline is expected to bring the cut-off much closer.

Trump, meanwhile, has urged EU nations not only to halt their own imports but also to impose punitive tariffs on India and China, accusing both countries of bankrolling Russia’s war machine. U.S. Treasury Secretary Scott Bessent reinforced this stance, saying Washington would only escalate tariffs on China if the EU led the way by penalising Beijing and New Delhi first.

What it means for India

If Brussels heeds Trump’s demand, India could be slapped with harsh tariffs on its exports to the EU, particularly in sectors like textiles, pharmaceuticals, and IT services. This would complicate India’s trade dynamics, as the EU is its third-largest trading partner , accounting for nearly 10% of India’s global trade . While New Delhi has diversified energy imports, Russian crude remains a critical part of its supply chain, making India vulnerable to Western trade retaliation.

The EU’s global trade clout

The European Union, a political and economic bloc of 27 member states , is the world’s second-largest economy and the largest single market. With collective GDP exceeding $16 trillion, its regulatory and trade policies carry global influence. The EU has historically used sanctions and tariffs as tools of economic diplomacy, shaping global supply chains and often forcing countries to recalibrate trade strategies.

As the Russia-Ukraine war grinds on, Brussels’ decisions—under U.S. pressure—could reshape not just Europe’s energy security but also the global trading system, with India and China in the crosshairs.