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Increasing Trade Risks between Europe and India: A Strider Report

A new report released by Strider Technologies sheds light on the increasing economic cooperation between Europe and India, but warns of significant economic security risks associated with this trade expansion. As more than 50,000 sensitive products, including components utilized in drones, missiles, and aerospace technologies, have been shipped to Russian defense entities through Indian intermediaries since 2022, the findings urge a more proactive approach to economic security by European governments and businesses.

The report, titled "Contested Ground: Russia's Parallel Engagement in India and the Economic Security Risks for Europe," highlights a disturbing trend in which Russia is bypassing sanctions to access sensitive technology through the expansive industrial and research ecosystems that link Europe and India. This situation has been exacerbated by recent free trade agreements between the EU and India, alongside closer trade relations established by the UK.

A Surge in Sensitive Imports

Since Russia's large-scale invasion of Ukraine in 2022, the import of sensitive goods to Russia from India has surged, particularly goods originating from major European economies. The UK alone has seen a staggering 180% increase in the export of sensitive goods from India to Russia from 2022 to 2025, compared to the previous three years. Notably, imports from Sweden and Switzerland have risen by 455% and 131%, respectively, during this timeframe. Moreover, there has been a significant uptick in sensitive goods coming from allied nations outside Europe, such as a 529% increase from Australia and a 459% rise from the United States.

The Geopolitical Landscape

As Europe intensifies its trade relations with India, the report calls for heightened vigilance regarding the geopolitical dynamics at play. David Vigneault, director of intelligence at Strider, emphasizes the significance of understanding the competitive landscape amid these burgeoning opportunities. The findings illustrate that Russia is leveraging these very same industrial and research networks to maintain access to critical capabilities and circumvent sanctions.

“The recent trade agreements between Europe and the UK with India represent a substantial step in strengthening economic resilience and deepening ties with one of the world’s most dynamic markets,” Vigneault states. “However, the current geopolitical context necessitates that governments and businesses maintain a clear-eyed view of the competitive landscape alongside these opportunities.”

Economic Security Considerations

The report also underscores the importance of integrating economic security considerations into decision-making processes. By investing in supply chain due diligence and risk analysis, businesses can position themselves to capitalize on emerging market opportunities without exposing themselves to unexpected vulnerabilities. The data suggests that companies that adopt this proactive approach towards economic security will be better off in the long run.

Vigneault explains, “This does not mean that we should oppose closer ties with India; rather, it reminds us to factor in economic security from the outset of business decisions.” He stresses that institutions must identify and manage risks associated with the global trading environment, emphasizing the need for improved transparency within supply chains and rigorous monitoring of end-use applications.

Future Collaborations and Shared Knowledge

An additional point raised in the report is the vibrant academic collaborations and talent pools shared between Russian and Indian institutes, which have facilitated knowledge exchange, especially in advanced technologies such as AI. Since 2022, there has been an impressive output of over 2,000 joint research publications annually, showcasing a strong partnership in these critical fields.

As India solidifies its role as a global manufacturing hub and a destination for the import of Western products, it becomes increasingly appealing to Russia as an intermediary to mitigate sanctions effects. For European companies operating in India, there lies inherent risk in unintended exposure.

The report concludes by recommending various strategies for public and private sector leaders to build a robust framework for risk identification and management in commercial environments globally. This includes enhancing supply chain transparency, closely monitoring final product usage, and ensuring alignment between business strategy and economic security policies.

The complete report, titled "Contested Ground: Russia’s Parallel Engagement in India and the Economic Security Risks for Europe," is accessible for further insights.

About Strider

Strider is a leading player in the strategic intelligence sector, assisting organizations in safeguarding and advancing their technologies and innovations. Utilizing cutting-edge AI technology and proprietary methodologies, Strider transforms publicly available data into actionable insights, empowering organizations to proactively address risks related to state-sponsored intellectual property theft, targeted talent acquisition, and third-party partnerships. Strider operates across 16 countries, with offices located in Salt Lake City, Washington, London, Tokyo, and Sydney.