New Delhi, 28 March 2022 (TDI): The US is also incensed with the growing pace of Russo-Indian relations, especially after breaking out of the Ukraine crisis. The US is of the view that the Indian decision conflicts with President Biden’s efforts to isolate and cripple the Russian economy.
India’s Oil Corporation recently bought 5 million barrels of crude oil from Russia at a great discount of $20 to 25 percent despite the ongoing war with Ukraine and heavy sanctions imposed by the US, EU, Canada, and other countries.
Taking advantage of the reduced rates it further announced to buy 15 million barrels from Russia during this year. According to commodities data and analysis firm Kepler, the Indian import of crude oil in March is much higher than last year’s corresponding time.
Nevertheless, the implications of India’s latest move and its ambivalent stand on the Russian war on Ukraine are bound to have a far-reaching impact on Indo-US future relations.
Indian spokesman did not go beyond announcing that the ‘international call for diplomacy and dialogue should be heeded’ with reference to the Russia-Ukraine conflict.
On the other hand in support of Russia, much to the worldwide dislike, it abstained from UN resolutions, condemning Russia and for an immediate end to the invasion of Ukraine.
As a response, the United States Press Secretary Jen Psaki said that “while India’s import of Russian oil would not violate US sanctions on Moscow, any country should think about where they want to stand while history books are written”.
Indian import will give a boost to the Russian economy. Justifying the Indian decision to buy Russian oil at discounted prices, India expressed its view that ‘countries with oil sufficiency cannot advocate restrictive trading.
Hence India’s legitimate energy transactions should not be politicized. It further clarified that nearly 85 percent of India’s crude oil requirement is met from West Asia ( i.e. Iraq 23 percent, Saudi Arabia 18 percent, UAE 11 percent while Russia remains a marginal supplier.)
It was pointed out that EU countries i.e. Germany, Italy, Finland, Romania, and several others acutely depend on Russian oil and are still importing oil from Russia so India is not the exception.
As regards the indignation of the US regarding growing Indo-Russia relations, it was highlighted by India that it had nurtured time-tested defense and diplomatic ties with Moscow for decades.
Russia continues to be the largest arms supplier to India, although its share has dropped from 70 percent to 49 percent due to the elevation of its domestic defense manufacturing. Indian imports from Russia amounted to $5.48 billion, while its exports stood at 2.6 billion.
Bilateral trade between India and Russia is about 10 billion. Against this backdrop and
in its own National self-interest, the US is unlikely to take any stringent measures against India’s recent adventure i.e. import of oil from Russia.
Its bilateral cooperation with the US under the strategic partnership is broad-based and multi-sectoral covering defense and security (including cyber security) trade, investment, civil nuclear energy, space technology, environment, and health.
India’s total trade with the US was $10.5 billion in January 2022 It is one of the top arms suppliers which supplies$ 22 billion worth of aircraft, helicopters, and missiles. Risking all this at this juncture looks far-fetched and utopian.
Moreover, both US and Indian interests converge to contain Chinese growing influence in South Asia including South East Asia. The US expects India to act as a bulwark against China. Hence alienating India would be contrary to US interest and hence looks unfeasible.
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