{"id":45006,"date":"2026-02-24T12:31:31","date_gmt":"2026-02-24T11:31:31","guid":{"rendered":"https:\/\/badania.uew.pl\/?p=45006"},"modified":"2026-02-24T12:38:02","modified_gmt":"2026-02-24T11:38:02","slug":"eu-india-relations-in-the-shadow-of-sanctions-risks-what-does-this-mean-for-businesses-an-expert-view-from-wueb","status":"publish","type":"post","link":"https:\/\/badania.uew.pl\/en\/eu-india-relations-in-the-shadow-of-sanctions-risks-what-does-this-mean-for-businesses-an-expert-view-from-wueb\/","title":{"rendered":"EU-India relations in the shadow of sanctions risks. What does this mean for businesses? An expert view from WUEB"},"content":{"rendered":"\n
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In discussions about the negotiated EU\u2013India trade agreement, the narrative is usually dominated by opportunities: trade liberalisation, easier conditions for companies, and access to a large market with strong growth momentum. An Interia Biznes piece, however, highlights another\u2014equally important\u2014side of the equation: potential economic gains must be assessed alongside risks stemming from geopolitics and sanctions regimes. This perspective is structured by an expert comment from Dr habil. Sebastian Bobowski, Professor at the Wroclaw University of Economics and Business (WUEB).<\/strong><\/p>\n\n\n\n

\"EU\u2013India<\/figure>\n\n\n\n

The interview with Dr habil. Sebastian Bobowski, Professor at WUEB, was conducted by Sebastian Ta\u0142ach (Interia Biznes), the author of the publication.<\/strong><\/strong><\/p>\n\n\n\n

EU\u2013India: an economic opportunity, but not an unconditional one<\/strong><\/strong><\/h2>\n\n\n\n

The expert from the Wroclaw University of Economics and Business points to a key context for EU\u2013India relations: \u201cA shadow over EU\u2013India relations is cast by New Delhi\u2019s partnership with the Kremlin.\u201d This is an important clarification, because it shifts the discussion from the general question \u201cIs cooperation with India profitable?\u201d to a more operational one: in which sectors and transaction types does risk become material from a compliance and business security perspective?<\/p>\n\n\n\n

Sanctions as part of risk management, not \u201ca legal issue dealt with at the end\u201d<\/strong><\/h2>\n\n\n\n

From a business standpoint, this implies a practical change: a mere declaration of compliance is no longer sufficient. Increasingly, what matters is the ability to demonstrate due diligence\u2014that the company screened the counterparty, assessed risks, documented its decision-making process, and monitored the transaction. As a result, sanctions risk becomes part of strategy, compliance, and operational management, rather than a purely formal legal \u201ccheckbox.\u201d<\/p>\n\n\n\n

Why \u201cpaper compliance\u201d is no longer enough<\/strong><\/h2>\n\n\n\n

The article accurately shows that modern sanctions rarely boil down to a simple ban on trade. Their real impact often emerges in indirect situations\u2014for example, when a company is involved in a transaction or supply chain linked to entities under restrictions, even without any intent to circumvent the rules. Hence the growing importance of risks related to re-export, opaque intermediary chains, and complex corporate links that are not easy to identify quickly.<\/p>\n\n\n\n

Risk is not \u201ceverywhere\u201d\u2014it is sector-specific<\/strong><\/h2>\n\n\n\n

The value of the expert comment lies in avoiding simplistic conclusions such as \u201cIndia is safe\u201d or \u201cIndia is risky.\u201d Instead, it stresses that sanctions risk tends to cluster in sensitive areas, which calls for selective, sector-based risk assessment, rather than broad assumptions.<\/p>\n\n\n\n

Where heightened caution is needed<\/strong><\/h2>\n\n\n\n

The piece points to examples of areas requiring increased vigilance: technology sectors and goods with potential dual-use (civilian and strategic) applications, including microelectronics, CNC machine tools, and UAVs\/drones, as well as selected issues related to refined petroleum products. At the same time, indirect risks are growing in logistics and finance\u2014covering maritime transport, ports, and financial services that may be used to circumvent restrictions.<\/p>\n\n\n\n

Links to Russia: when risk becomes critical<\/strong><\/h2>\n\n\n\n

If a potential counterparty regularly cooperates with Russian entities, for many EU companies this may translate into unacceptably high risk, and in practice even rule out safe cooperation. This is not only a reputational matter: it also involves legal and financial consequences that management should factor in at the deal-approval stage\u2014not only after problems arise.<\/p>\n\n\n\n

Consequences of breaches: tangible costs and real liability<\/strong><\/h2>\n\n\n\n

The article also reminds readers that in Poland, breaches of sanctions regulations may result in high administrative fines and, in certain cases, criminal liability. This reinforces the central point: sanctions should be treated as a strategic risk area, with a direct impact on commercial decisions, partner selection, and internal processes.<\/p>\n\n\n\n

Regulatory gaps and the need for clarification<\/strong><\/h2>\n\n\n\n

Another important systemic point is the observation that Polish sanctions regulations require clarification\u2014for example, in terms of mechanisms that could recognise voluntary self-disclosure of a breach as a potential mitigating factor when financial penalties are imposed. This matters not only to lawyers, but also to compliance and risk managers.<\/p>\n\n\n\n

Contract clauses are not enough<\/strong><\/h2>\n\n\n\n

Against this backdrop, a key practical conclusion stands out: contract clauses and counterparties\u2019 declarations of sanctions compliance are, at best, an add-on. In cross-border relationships, their effectiveness can be limited, especially when it comes to enforcement. Therefore, contractual tools should complement\u2014rather than replace\u2014robust screening procedures, transaction monitoring, and ongoing risk assessment.<\/p>\n\n\n\n

How businesses can reduce risk in practice<\/strong><\/h2>\n\n\n\n

The article points to several directions: using information tools (including official sources and helpdesks) and seeking support from specialised providers focused on risk assessment and business intelligence. The core principle remains self-responsibility: the company is ultimately accountable for properly vetting the transaction and the partner.<\/p>\n\n\n\n

Why this voice matters in the debate<\/strong><\/h2>\n\n\n\n

Dr habil. Sebastian Bobowski, Professor at WUEB, plays the expert role effectively: he translates a complex geoeconomic context into the language of business decisions. In the case of EU\u2013India relations, such analyses\u2014precise, sector-focused, and grounded in regulatory realities\u2014are exactly what internationally active companies need today.<\/p>\n\n\n\n

Read the full piece on <\/strong>Interia Biznes<\/strong><\/a> (in Polish)<\/em><\/p>\n\n\n\n\n\n

Authors: Justyna Morawska-P\u0142oskonka, Agnieszka Drami\u0144ska<\/strong><\/p>\n<\/div>\n<\/div>\n\n\n\n

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In discussions about the negotiated EU\u2013India trade agreement, the narrative 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