India defended its right to continue purchasing Russian energy on Friday after the US urged the country to halt purchases of Russian oil and gas.
According to an informed source, India’s energy sector is highly reliant on imports and the country’s reliance on imported energy should not be “politicized.” “Countries with self-sufficiency in oil or those that import from Russia cannot credibly advocate restrictive trading,” the source said, alluding to growing Western pressure to halt Russian oil and gas imports.
The Hindu previously reported that India’s energy majors had advanced plans to purchase oil and gas from Russia at a “discounted” price.
India’s position was reaffirmed as international pressure mounted on India to halt its purchase of Russian energy. The issue is expected to come up during Prime Minister Fumio Kishida’s March 19-20 visit to India for the 14th India-Japan summit. Australian Prime Minister Scott Morrison stated on Friday that Ukraine will be discussed during his virtual meeting with Prime Minister Modi on March 21. The issue is also expected to come up during British Foreign Secretary Liz Truss’s likely visit later this month. Australia, Japan, and the United Kingdom have all imposed sanctions on Russia.
US trying to put diplomatic pressure on India
The US has stepped up diplomatic pressure on India to halt its purchase of Russian energy. Jen Psaki, a spokesperson for the White House, equated purchasing energy from Russia with “support for the Russian leadership,” adding, “Also consider your position when history books are written at this point in time.”
The Indian side contended that a sizable number of Western and European countries, in particular, continued to purchase energy from Russia despite Moscow’s aggressive military operation across Ukraine.
Germany, Italy, France, and the Netherlands are among the largest buyers of Russian oil and gas. Apart from the major European countries, the source noted that even frontline states such as Poland, Lithuania, Romania, and Finland imported large quantities of Russian crude oil.
Increased pressure
India is under increasing pressure to halt its purchases of Russian oil and gas in the face of intensifying attacks on Ukraine. Russia launched a massive attack on the airport in the historic city of Lviv, near the Polish border, on Friday. Similar geopolitical crises in the past, involving Iran and Venezuela, forced India to pursue alternative energy sources, which came “at a higher price,” according to the source.
Energy politics have been a subtext to the Ukraine crisis, which erupted on February 24 with Russia’s “special military operation.” Soon afterward, Germany halted construction of Nord Stream 2, a 1,230-kilometer-long gas pipeline that would have significantly increased Germany’s access to Russian gas.
In light of this, companies with a high degree of exposure to the US market canceled orders for Russian crude and natural gas. This, however, freed up a significant amount of Russian energy, which Moscow is now selling at a discount to prospective buyers. According to the source, the push to acquire Russian oil and gas is part of a strategy of “competitive sourcing.”
The Indian side has noted that while the sanctions against Russia have been harsh, they have included “carve-outs” for buyers of Russian energy, which will benefit Western powers.
The Russian banks, which are the primary payment conduits for the energy business, have also remained a part of the SWIFT payment gateway. Russia was partially barred from SWIFT following the invasion of Ukraine. Finance Minister Bruno Le Maire of France had previously referred to the measure as a “financial nuclear weapon.”