‘For EU, India is a very promising market of significant magnitude’

European Commission President Ursula von der Leyen has said that letting the Russian aggression in Ukraine go unchallenged could lead to a world where “might makes right”, including in the Indo-Pacific, where there are “simmering tensions”.

In an interview, Von der Leyen said she would discuss the Ukraine crisis with the Indian side with a call for collective action to “stop this aggression now”. The European Union (EU), she said, will work with friends and partners, notably India, to ensure the security and prosperity of the Indo-Pacific region. Edited excerpts:

Could you tell us about the agenda for your visit to New Delhi and the priorities of the European Union’s engagements with India?

When I took up office in 2019, I made it clear that I wanted the Commission to work for Europe as an active geopolitical player, upholding the rules-based global order, fighting climate change and charting the digital transition. On all of these topics, India is a crucial partner. We share the same democratic values and we have converging interests on the world scene, including when it comes to a peaceful and prosperous Indo-Pacific.

We also want to foster our broad economic agenda, both bilaterally and in multilateral fora such as the WTO. We are now resuming negotiations for a free trade agreement as well as starting talks for an investment protection agreement and an agreement on geographical indications. We are expanding our security and defence dialogue. I look forward to my discussions with Prime Minister Modi on all these issues.

I also have the honour to open this year’s edition of the Raisina Dialogue. We are facing an unprovoked and unjustified attack by Russia against Ukraine, so it is of the utmost importance that the international community comes together to defend the values of the UN Charter. Global fora such as the Raisina Dialogue can help.

You were the first European leader to visit Ukraine and more specifically Bucha. How much of an inflection point has the war in Ukraine been in terms of the strategic and security policies of the European Union?

Russia´s invasion of Ukraine has changed the geopolitical landscape of Europe. We have shown how strong we are by acting together. The EU is not only giving Ukraine substantial political, financial and economic support, it has also taken the unprecedented step of financing the delivery of military equipment to the Ukrainarmed forces.

But this crisis has also shed a strong light on the EU’s needs when it comes to military capabilities. Many member states have announced substantial increases in their defence spending. We are taking major steps forward to strengthen the European defence industrial and technological base.

Working with partners is and will be a key priority for the EU. This is why we have put such emphasis on the Indo-Pacific region, and in particular India, with whom we are already cooperating also in the area of maritime security.

You shared a questionnaire with President Volodymyr Zelenskyy to start the formal process of Ukraine’s entry into the European Union. Such a process usually takes years, but will it be fast tracked in the case of Ukraine? Don’t you run the risk of aggravating the situation with Russia?

Ukraine is a sovereign country, free to choose its alliances and partnerships. The EU and Ukraine have signed strategic partnerships. Ukraine clearly belongs in the European family. After the war, the international community will work with Ukraine in rebuilding the country and the European Union will make this a priority. This process of investment and reform will constitute an important further step on the path to the European Union.

What action, if any, will the European Union take against countries that put in place measures to circumvent Western sanctions on Russia? India has taken up Russian offers of discounted crude oil. Your comments on this.

The aim of the sanctions by over 40 countries around the world is to hamper Putin´s ability to continue the bloodshed in Ukraine. Sanctions are directed against the Kremlin’s war machinery. We invite other countries to join this effort, because Russia’s aggression is not only a danger for individual countries but for the entire world.

Given that India hasn’t publicly criticised the Russian invasion and abstained so far on Ukraine-related issues at the United Nations, will you discuss the Indian side’s position during your interactions in New Delhi? Would the European Union like to see a change in this position?

We will of course discuss Ukraine. We are actually engaged in intense consultations with all our partners worldwide, bilaterally and at the UN. What I say to all my interlocutors is that we need to stop this aggression now. We must uphold respect for the UN Charter, territorial integrity and the sovereignty of nations. This unprovoked attack by Putin is a challenge to the very principles that underpin global peace and security. We work very closely with India also in this respect and we appreciate the repeated calls by Prime Minister Modi for an immediate cessation of hostilities as well as the delivery of humanitarian aid from India to Ukraine.

How much of a potential risk is there of the Russian invasion of Ukraine triggering similar incidents in the Indo-Pacific? Within the Indo-Pacific, China has unresolved border disputes with several countries. What are the European Union’s plans to maintain and uphold the rules-based order in the Indo-Pacific?

I believe there is a risk that – if this aggression goes unchallenged – we may all face a world where might makes right. The EU is for the rule of law, not for the rule of the gun. This is valid not just in Europe but also in the Indo-Pacific, where we see simmering tensions. With our Indo-Pacific strategy we have clearly indicated that the EU has a strong stake in the security and prosperity of the Indo-Pacific. An important milestone was the Indo-Pacific Ministerial Forum, held in Paris in February. It brought together around 60 participants from the EU and the Indo-Pacific, including (forian eign) minister Jaishankar. We want to work with our friends and partners, notably India.

With contacts resuming on the proposed India-EU free trade agreement, how do you think the discussions are shaping up? Are there any major sticking points and will negotiations for a trade pact be separated from discussions on investment and geographical indication?

India and the EU represent a combined market of 1.8 billion people and a GDP of € 16.5 trillion. And yet EU-India trade in goods and services in 2020 amounted to only € 96 billion, so there is so much untapped potential. The EU is India’s third largest trading partner. For the EU, India is a very promising market of very significant magnitude.

Together, we need to support the recovery and the green and digital transformation of our economies, as well as navigate around rising global tensions and secure our supply chains. This is why we decided to resume negotiations. Our common objective is to conclude swiftly and ambitiously all three agreements: on trade, investment protection and geographical indications.

Have the two sides finalised any concrete proposals under the India-EU connectivity partnership? What are the two sides doing to offer transparent and effective connectivity alternatives in the Indo-Pacific?

Our initiative is the Global Gateway. It will enable up to € 300 billion of investment. As an example, the European Investment Bank has finalised a € 250 million loan for the construction of the metro in Agra. The EU is investing in India for sustainable urbanisation, a crucial aspect of our global fight against climate change. We need smart climate-oriented cities. Another example of this: the EU will be funding the rehabilitation of 242km of pipeline networks and supporting the transition to a sustainable 24x7 water supply service in the city of Chandigarh.

In short, we are working with the Indian government and stakeholders to identify fresh opportunities to implement the connectivity partnership at local, national but also global level.

For instance, the EU is also contributing to the India-led Coalition for Disaster Resilient Infrastructure. We will participate with € 5 million in the fund for resilient infrastructure in small island developing states.

We are looking at possible projects to build energy connections in South Asia. We all need to work together for a green, resilient and digital future.