Context:
• The US and EU have imposed fresh sanctions on Russia targeting its energy exports and economy.
• India has reiterated that it does not support unilateral sanctions not backed by the United Nations Security Council (UNSC), but may calibrate Russian oil imports to safeguard economic and energy interests.
Key Highlights / Details:
India’s Official Stand on Sanctions
• India recognizes only UN-backed sanctions, not those imposed by individual countries or blocs.
• India argues unilateral sanctions violate international law and impact developing nations’ economic stability.
• Similar position upheld during US sanctions on Iran and Russia in past.
Why Russian Oil Matters to India
• Russia became India’s largest crude oil supplier after 2022, offering discounts post-Ukraine war.
• Russian crude accounted for over 40% of India’s imports in 2023, reducing energy import bills.
• India has maintained oil purchases are based on national interest and energy security.
US–EU Pressure and Secondary Sanctions
• US sanctions target Russian companies Rosneft and Lukoil, and restrict shipping and financing routes.
• New “shadow fleet” sanctions penalize entities using alternative channels to move Russian oil.
• These secondary sanctions may impact Indian refiners and traders indirectly.
Likely Impact on India
• India may reduce dependency on Russian crude to avoid financial and trade risks.
• Payment settlements via UAE dirham and yuan channels may come under scrutiny.
• Indian refiners exploring diversification: Iraq, Saudi Arabia, US, and West African suppliers.
Relevant Prelims Points:
• Sanctions imposed by: US OFAC, EU Council Regulations
• Secondary sanctions – penalties on third-party countries/entities dealing with sanctioned states
• G7 Oil Price Cap – $60/barrel limit on Russian crude for global buyers using Western services
• India’s core doctrine – Strategic Autonomy in foreign policy
Relevant Mains Points:
• India follows principled neutrality and opposes coercive diplomacy
• Balances ties via multi-alignment – US, EU, Russia, and Global South
• Challenges – avoiding CAATSA-like sanctions, securing energy routes, payment security
Way Forward: Strategic diversification, rupee-based trade mechanisms, long-term energy security architecture.