A government official in India said Friday that it would increase its imports from Russia oil to help boost its energy supply as the country struggles to recover from its coronavirus pandemic. According to the official, the most recent purchase was 3,000,000 barrels.
India isn’t the only one buying Russian energy. Other European allies, such as Germany, have done so. This decision contradicts Biden’s efforts to isolate Russia’s economy using sanctions.
An increase in oil flow could cause further tension between Washington and New Delhi. This relationship has already been tested recently by India’s recent purchase of advanced Russian air defense system.
The White House is still weighing whether to impose sanctions on India in response to this purchase. According to a U.S. official, the issue is being considered with a “different spin”, following Russia’s invasion in Ukraine. An anonymous source spoke on condition of anonymity in order to discuss internal decision-making.
The oil deal serves as a reminder of the geopolitical balancing act that Biden has had to perform since the conflict in Ukraine. While he is trying to rally countries against Russia’s invasion of Ukraine, he sees India as an important partner for countering China’s growing influence in Asia.
The friction between the U.S. and India relations has been an issue for Russia for a long time. However, the White House believes that the two democracies share more in common than what divides them.
India is a member the Quad, an international partnership which also includes Australia, Japan and the U.S. The leaders of each of these four countries are scheduled to meet in Tokyo this year.
While Narendra Modi, Indian Prime Minister, has a questionable record on human rights but he was invited to Biden’s virtual summit on democracy in Dec.
Biden spoke at the summit about the struggle between democracy, autocracy and the “defining challenge” of our times. Modi stated that India was ready to “join other democracies in this noble endeavor.”
While the White House has warned China against siding Russia during war in Ukraine, it has been less explicit when it comes to India’s role.
Jen Psaki, White House Press Secretary, acknowledged Friday that India has not purchased oil from the United States, even though it has been banned by the U.S.
She said that “they have different economic reasoning.” She cautioned other nations that the rest of the world was watching to see where they stand in relation to this conflict.
India imports 85% of its oil requirements, and its total demand is expected to rise 8.2% to 5.15 Million barrels per day by 2015.
According to Indian media, Russia offered a 20% discount for oil purchases that were below the global benchmark price.
Arindam Bagchi, spokesperson for India’s External Affairs Ministry said that they are looking at all options in the global energy market. “I don’t believe Russia has been a major oil source to India.”
India’s relationship to Russia is more about defense than energy. Russia supplies only a fraction of India’s oil, but it provides the bulk of India’s military hardware .
Richard Rossow, a specialist on India-U.S. relations at the Center for Strategic and International Studies in Washington, said that “It’s crucial for India’s military readiness. Particularly as they have an ongoing boundary crisis with China.” Twenty Indian soldiers and four Chinese troops were killed in an ongoing territorial dispute about eastern Ladakh.
India abstained at a United Nations Security Council vote condemning Ukraine’s invasion. The Russian Embassy in New Delhi responded by saying that it “highly values(s) India’s independent and balanced position.”
Ken Juster, an ex-ambassador of the United States to India, stated that the South Asian nation believes in strategic autonomy and will not align with either side in conflicts between East and West.
He expects New Delhi will be subject to additional pressure as the conflict in Ukraine continues.
He said that India will face an ever more difficult situation as Russia’s atrocities grow more obvious and more widespread. It will be hard for any country to not condemn these atrocities.
Biden described the situation in this context as a work-in-progress.
Soon after Russia invaded, Biden was questioned if India is “fully compatible” with the U.S. regarding Russia.
He replied that India was in consultation with him, and that they have not resolved the issue completely.
