That ally was rapidly becoming a potential, if not an actual foe, when these medals were not struck.
You are right - politics and medals go hand in hand. After WW2, medals awarded by our American, French and Belgian allies, for example, were authorised to be worn after British medals, whereas those recipients of Soviet awards were not permitted to wear theirs. There were around 100 British recipients of Soviet orders, including four RAF aircrew from 151 Wing (Hurricanes) in North Russia who received the Order of Lenin. These would certainly have caused comment on parade had they been permitted to wear them!