A tightrope walk for India

As such, there aren’t any simple choices to make sure power safety for India, the world’s third-largest client of crude oil, greater than 80% of which is imported. The oil purchases from Russia have the additional advantage of stopping Moscow from being overly reliant on Beijing, particularly when India’s relations with China are at an all-time low due to the army standoff on the Line of Precise Management (LAC). Final month, India and China accounted for greater than 41% of all of Russia’s oil exports, nearly double the figures for July final yr, although there are indications that imports by each nations are slowing down.

Nonetheless, India must look carefully on the trade-off between making certain power safety and the geopolitical tightrope it has to stroll within the present circumstances. Whereas even the US acknowledges that the potential of India reorienting its strategic relationship with Russia is a particularly long-term proposition, there aren’t any indicators of a let-up within the strain on India to cease shopping for Russian oil. A prime Reserve Financial institution of India official not too long ago acknowledged that the US had expressed concern about Indian refiners getting used to export gas made out of Russian crude, following the switch of oil on the excessive seas. There are additionally indicators of the noose being additional tightened on Russian power exports, together with a price-capping mechanism by the Group of Seven economies that’s anticipated to be in place by December and the long-term chance of restrictions on maritime insurance coverage for vessels carrying Russian crude. All of this may contain extra tightrope strolling by India and balancing its power safety pursuits, and the necessity to reassure its companions within the West. Neither might be compromised — and that’s the problem.