- The escalating war between Russia and Ukraine is generating heat on many fronts and affecting the entire world community. In every country, the cost of basic goods has risen, causing inflationary trends. As is customary, the suffering brought on by existential problems is disproportionately felt by the poorer classes of society. We are aware of how little or no effect the ostensibly restrictive sanctions have had on Russia. The ineffective sanctions haven’t stopped the Russian government from looking into new markets for selling crude oil, notably India, which has quickly risen to the top of the list of buyers.
PC: Nayara Energy
- As can be expected, European and Western nations have protested India’s continuous import of petroleum, but up to this point, New Delhi has maintained its stance. Be aware that, despite sanctions, Russia supplies the majority of the energy needs of European nations. Despite the sanctions imposed by the US-led consortium, Russia continues to be the dominant provider of the European Union’s energy needs. Now, the Indian leadership has made it clear from the start that war is not an option at the moment and has pushed for the start of peace talks to find a resolution to the situation at every venue.
- Although the Indian position has been contested by several nations, New Delhi has resolutely refused to budge from the declared goals. The issue, though, won’t go away because various leaders have made inappropriate statements. Consider Jose Borrell, a representative of the EU in international relations, who was recently criticized for breaking Western sanctions against Russia. Within 24 hours, the executive vice president of the EU used the language of reconciliation when he said that the EU and India would discuss the situation as friends and not with a raised voice or a finger in the air. For what it’s worth, Borrell based his uncivil remarks on a study by the Finnish research organization Crea, which called for a crackdown on India.
- Given that the EU was allegedly purchasing Indian diesel and petrol derived from Russian crude, it was claimed that India was one of the nations being referred to as “launderettes of Russian crude oil.” This is the backstory. The G7 nations set a $60 per barrel price cap last year as part of sanctions and to severely restrict Russia’s oil revenue. Russian crude’s share of India’s oil imports climbed from 1% in February 2022 to 35% in March 2023 as a result of increased purchases by India. India is a significant provider of oil products to Europe; since Russia invaded Ukraine, diesel shipments from India have tripled.
- As the third-largest trading partner of India, the EU has profited from this. This trade includes a sizable portion of oil products. India presently exports approximately 3.8 million tonnes of oil-related goods to the EU and G7, among other countries. The government of India, for its part, flatly refuted the report. Invoking the regulations, the foreign minister argued that Russian oil is not considered Russian if it has undergone significant transformation in a foreign nation. Arguments are over. Borrell was interpreting an absence of a breach as one. For those who are unaware, India is well within its rights to import crude and export refined oil products, regardless of the source of the crude.