India Looking At Sanctions Impact On Economy As US Presses For Stronger Russia Stance

by GoNews Desk 2 years ago Views 9214

Russia-Ukraine Conflict, Sanctions, India , China

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Amid the ongoing military offensive in Ukraine launched by Russia which has now completed one month and officially entered its ‘phase two’ as per Russia, India’s position on the matter has repeatedly come into the spotlight. 

The reactions of the two major Asian powers, India and China, are being closely watched since both are geopolitical counterweights to each other from the Western point of view. 

As China aligns to Russia, criticizing the policy of economic sanctions and refusing the term ‘invasion’ while naming the United States directly, India has taken a more ‘balanced’ approach since it is part of the U.S. strategic sphere of influence and also has close defence and energy ties with Russia. 

India is the world’s largest importers of arms and among the largest importers of crude oil as well. Thus, any decoupling with Russia, with which there are no territorial or other geopolitical disputes, is a major hairpin bend that New Delhi is not that eager to take. 

India bought 5 million barrels of Russian crude oil at discounted prices on March 16th through state-owned Indian Oil, prompting a reaction from the U.S., saying “As the world’s largest democracy, and as a leader of the Quad, India has a responsibility to ensure its actions do not directly or indirectly support Putin and his invasion,” as said by Amy Bera, a lawmaker in the US Congress. 

The United States said India’s purchase of oil from Russia would not be sanctioned but its rhetoric indicates its displeasure and a tighter alignment to its policy on Russia as seen with its ‘European partners’, with whom the U.S. has signed an LNG supply deal that will replace 10% of the current Russian volume that the EU consumes. 

Also Read: 'India Somewhat Shaky On Russia' Among QUAD Members, Says US President Biden

The U.S. has reached out to India to get it to take a stronger stand against Russia. Victoria Nuland, another senior American official, spoke to the Indian Express days ago and said that the U.S. and allies can help wean off India from its arms import dependence on Russia. 

Read: US Says India Is ‘Partner Of Choice’, Official Says Can Help Transition From Russian Arms

‘Unsatisfactory, But Not Surprising’: U.S. Official Comments On India’s Russia Stance At U.N. 

On Friday, March 25th, a White House official commented on India’s consistent abstentions on Russia-Ukraine related resolutions at the United Nations. The White House Security Council director of the Indo-Pacific region, Mira Rapp-Hooper, said in an online forum that "I think we would certainly all acknowledge and agree that when it comes to votes at the UN, India's position on the current crisis has been unsatisfactory, to say the least. But it's also been totally unsurprising,"

Read: India Abstains On UN General Assembly Resolution On Humanitarian Crisis Presented By Ukraine, Allies

‘Assessing Impact Of Sanctions On Economy’ Says India; UNCTAD Cuts Growth Projection

The government said on Friday that it is examining the impact of sanctions on Moscow on bilateral trade and economic relations between India and Russia. For its invasion of Ukraine, the United States and numerous Western countries have placed crushing economic sanctions on Russia.

"Due of the crisis, many nations have placed sanctions on Russia. These are predicted to have an effect on the global economy, including supply chain disruption. "Its influence on energy and commodities prices is already obvious," stated Meenakshi Lekhi, Minister of State for External Affairs.

"We have voiced our grave worry about the deteriorating situation and have asked for an immediate suspension of violence and an end to all hostilities," the statement claimed "she said According to Lekhi, India has emphasised that diplomacy and negotiation are the only options for resolving the problem. "We have made it clear to all UN member states that the global order is based on international law, the UN Charter, and respect for nations' territorial integrity and sovereignty," she said.

According to reports, India is coming closer to developing an alternative payment mechanism to preserve its commerce with Russia by selecting a suitable bank, as a senior panel investigating the matter has advised prioritising edible oil and fertiliser imports, as well as payments owing to India.

A report released on Thursday, March 24th, by the UN Conference on Trade and Development (UNCTAD) downgrades India’s GDP growth projection for FY 2022 from its earlier figure of 6.7% to 4.6% against the backdrop of the Ukraine war. The reasons attributed for this are higher oil prices, growing inflation, effects of economic sanctions on businesses, and tightening of monetary policies around the world as a response to rising prices.

Read more here 

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