- Donald Trump’s unbridled enthusiasm for imposing sanctions on the global community is by now become so familiar that none would feel surprised or taken aback by the move anymore. Such has been the destruction and instability caused by the mercurial, maverick, impetuous, and extremely unpredictable Trump that not a day passes without him hitting the headlines. Of course, Trump’s penchant for bombastic claims has not gone unnoticed, especially about stopping the ongoing conflict around the world. However, the Russia-Ukraine conflict has meandered along even after three years. Thankfully, the fragile peace brokered between Israel and Hamas has yielded some breathing space, but the underlying distrust is soon bound to escalate in the coming days.
PC: India Today
- While a few countries have succumbed to the bullying tactics of Trump to impose tariffs on their commodities. Some countries, like China and India, have held their ground without conceding much to the pressuring tactics deployed by Trump. The President has been ranting about how India’s oil purchase from Russia is fueling Moscow to continue to wage war against Ukraine. An additional 25% tariff has been imposed on Indian commodities as a sanction for purchasing Russian oil. Now, by imposing direct sanctions on two of Russia’s largest oil exporters, Rosneft and Lukoil, Trump seems to have changed his mind on Putin. After months of holding out on incentives to get Russia to end its war in Ukraine, White House is now going after Moscow’s war ATM.
PC: Times of India
- The moot point to ponder over here is whether such a move will work. Rosneft and Lukoil push out nearly two-thirds of the 4.4mn barrels of crude Russia exports every day. So, these sanctions are big. But Putin has shrugged off their impact, perhaps secure in the knowledge that the two Russian companies have already planned workarounds. Significant volumes of Russian oil exports are denominated in yuan and rubles. So, Rosneft and Lukoil can push out their crude through a shadowy, ownership-obscuring network of intermediaries. But it’s less than ideal. Much will also depend on the US resolve to impose secondary sanctions on entities that do business with Russian energy majors. That threat has some weight. Interesting times ahead for sure.
PC: Eurasia Review
- Already, Indian refineries have indicated they will suspend Russian crude imports. The EU, too, is getting tougher on third parties. Lukoil, which has hundreds of gas stations in Europe and stakesin refineries, will have to sell them. China, however, may continue buying. As such, will this force Putin to the negotiating table? Unlikely for now. The sanctions, along with ongoing Ukrainian drone strikes on Russian energy infrastructure, will squeeze Russian energy revenues, but not enough to change Moscow’s position immediately. Second, Trump is mercurial, and he may change his mind again, especially if US pump prices -currently comfortable – start hurting Americans. Multiple variables are at play here. How will the move impact India going forward?
