India finds itself unable to cut down its oil procurement from Russia in the way it downscaled its oil intake from Iran and Venezuela six years ago. The disparity in magnitude and value concerning the latter two nations and Russia makes it impossible to employ a similar approach. The call to ‘zero out’ India’s oil imports from Iran and Venezuela came from former U.S. President Donald Trump in his inaugural term back in 2018. Succumbing to the pressure, India met the American request prior to its stipulated deadline in May of 2019.
A watershed moment occurred on Wednesday when Mr Trump implemented an executive order stating that a 25% penalty would be charged in addition to the existing 25% tariffs on Indian products. This is on the condition that India does not sever its energy ties with Russia, a nation that accounts for more than a third of its oil imports. This penalty is slated to come into force by the 27th of August unless Russia calls off its conflict with Ukraine.
This posturing by the United States is anticipated to burden India and Russia, in light of an impending discussion between Mr. Trump and Russian President Vladimir Putin. Moreover, the upcoming yearly summit between President Putin and Indian Prime Minister Narendra Modi has also been considered. At the global stage, Russia isn’t comparable to Iran. For us, Russia is an influential force in global politics and we desire to maintain our strategic partnership with them,” said an official reflecting on the matter.
He further stressed on the historical support India has received from Russia, both politically and through defense technology, when other nations chose not to extend the same. He also expressed concerns about the implication of succumbing to Mr. Trump’s requests, asserting that it would only feed the USA’s proclivity to extract further concessions from India.
Renowned scholar Brahma Chellaney voiced his opinion about the matter, stating the USA’s stance on Russian oil serves as a disguise to manipulate India into accepting trade conditions favorable to the USA. Moreover, he emphasized it is to gain market access for U.S. agricultural yields.
He further opined, ‘Reducing India’s procurement of Russian oil probably won’t deter Trump. Ultimately, he seeks a trade agreement that is advantageous for America.’ Before recent developments, India was bringing in nearly two million barrels of oil every day. This makes India the second most prominent importer of Russian oil.
On one occasion, Chellaney highlighted that the U.S. had supplied drones along with winter clothing to back up the Indian troops during the standoff between India and China at the Line of Actual Control with minimally short notice. The provision of such support suggests a volatility in India-U.S. relations that goes beyond the oil issue.
The scholar further pointed out, ‘Although President Trump may assume that sanctions and elevated tariffs equate to substantially pressurizing India, I believe these measures will instead impose greater strains on the U.S.-India bond.’
India and the U.S. have nurtured a healthy relationship over time, and any move that hinders this should be perceived as a setback for both. Consequently, the strategic and economic fallout of such a highly pressured scenario could resonate through both nations in ways harder to tide over than any momentarily elevated tariffs or imposed penalties.
The trade and geopolitical implications of America’s pressure tactics can create faults and fractures in bilateral relations that defy short-term fixes. As nations chart their policy courses, they also set the rhythms for how other countries will interact and engage with them. In this sense, the brunt of the strain and pressure might paradoxically fall more on the U.S., given the potential for reduced leverage and influence within the Indo-Pacific region.
The narrative underscores the complexities embedded within geopolitical relationships, reiterating how individual moves fall within larger games of chess. The oil situation concerning Russia, India, and the United States is just one move on a global board, wherein nations attempt to rearrange powers to their advantage.
As the world waits for these developments to unfold, it is also crucial to be mindful of the repercussions beyond oil imports and tariffs. Should India ultimately cave to the pressure from the U.S., it could potentially ripple across the socio-political landscapes of each nation, affecting the layers of their diplomatic relations.
These potential retaliation measures, coupled with their underlying political dynamics, serve as vivid reminders that international politics is a terrain where move and countermove must be deftly managed. In the grand theatre of world politics, strategic maneuvering is key and resisting pressure is as invaluable a tool as applying it.
India’s oil imports situation is a clear representation of a global game of power, and it plays into an array of other intricacies including trade agreements, relations among nations, and holding one’s ground in the face of pressure or the risk of receding influence.
On the broader spectrum, the intermingling of oil politics and international relations reiterates the convergences between economics and geopolitical strategy. Be it India, Russia, or the U.S., each country’s moves regarding oil, trade, or tariffs feed into a larger narrative – a narrative where balance and tact are paramount to maintaining and enhancing relationships between nations.
As this episode unfolds, it becomes clear that each move made will have ripple effects, affecting not only relations between India, Russia, and the U.S., but the larger picture of global diplomacy and power politics. A thorough understanding of such dynamics is therefore necessary as we move forward in this increasingly interconnected world.
The post India Struggles with Cutting Down Oil Imports from Russia appeared first on Real News Now.
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