Did US oil sanctions expedite the signing of an EU-India trade deal?

Core Insights - India and the European Union have finalized a trade deal that significantly reduces tariffs on nearly all goods, which may impact global trade dynamics and energy supply chains [1][2]. Group 1: Trade Deal Implications - The trade deal allows Europe to purchase refined products from India, which are derived from Russian oil, raising concerns about financing the ongoing conflict in Ukraine [2][10]. - The U.S. has imposed a 25% tariff on India for purchasing Russian oil, while the EU is leveraging the free trade agreement to strengthen ties with India, potentially altering U.S.-EU trade relations [4][9]. Group 2: India's Energy Needs - India imports approximately 4.5 million barrels of oil per day, with traditional suppliers like Saudi Arabia and Iraq providing around 2.2 million barrels, while other countries have significantly reduced their supply [5][15]. - The decline in oil production from various countries and sanctions on Venezuela and Iran have led India to increasingly rely on Russian oil, which is seen as a necessity rather than a choice [6][15][16]. Group 3: Future Energy Sanctions - The ongoing reliance on Russian oil by India may undermine the credibility of future energy sanctions, as India continues to seek energy security amidst declining supplies from traditional sources [14][15]. - The EU's phased approach to sanctions contrasts with the U.S. strategy, indicating a divergence in policy that could complicate future trade negotiations [11][12].