US Russia Oil Deal: A very interesting turn has taken place in world politics. US President Donald Trump has taken a big decision to buy diesel on a large scale from Russia. On the other hand, Washington is constantly threatening to impose 100 percent tariffs and strict embargoes on many countries, including India, on buying Russian oil. This dual stance of the US has intensified the diplomatic jitters in New Delhi. On one hand, America is ready to import fuel from Russia for its own benefit, on the other hand, it is trying to put pressure on others. The biggest question in such an environment is what diplomatic options India has at this point and how New Delhi will deal with this situation.
Trump’s double standards
US President Donald Trump has signed a major fuel deal with Russia. Under this agreement, Russia will immediately supply more than 3,00,000 tonnes of diesel to the US. This will be followed by 5,00,000 tonnes of diesel in November, followed by 1 million tonnes soon after. According to the US President, 3 million more tonnes of diesel can be supplied considering the condition of the refinery. Trump has written on the social media platform Truth Social that his control of the Strait of Hormuz and this new agreement with the US will bring down diesel prices around the world very quickly. He said lowering prices for American farmers, ranchers and truck drivers is his top priority.
Oil supply disruptions through the Strait of Hormuz and attacks on Russia’s oil infrastructure are driving up fuel prices in the US and Europe. Trump has also advised the President of Ukraine to stop attacks on Russia’s oil infrastructure. This entire exercise is being done to woo the voters in view of the upcoming mid-term elections in America. But the big deal is that the US itself is buying diesel from Russia, but is threatening 100 percent tariffs under the Russia-Iran Sanctions Act (SRIA).
What option does India have?
India’s strongest option in the face of this pressure is to use its diplomatic power. In talks over the past few months, New Delhi has made it clear to America that imposing sanctions on India is not in America’s interest. India has consistently said that if restrictions are imposed on it under the SRIA, the mutual relations between the two countries will be adversely affected.
Relations between India and the US are already going through a sensitive phase on several issues. The finalization of the trade agreement between the two countries continues to be delayed. Along with this, the growing closeness between America and Pakistan has also increased India’s concern. In such a situation, New Delhi has made it clear that any unilateral decision on sanctions could hurt the partnership between the two countries. On September 30, Prime Minister Narendra Modi and President Trump had a good phone conversation. India can maintain diplomatic pressure on the US through these high-level talks.
Equal exemptions, demands to cut regulations
Another major option for India is to mirror American double standards on legal and moral grounds. While the US itself can find a way to relax the rules to buy millions of tons of diesel from Russia, imposing restrictions on India seems completely wrong. According to a report in the Economic Times, Washington can make some concessions for itself so that its purchase ban is not considered a violation of the law. If America brings such a rule, India will also benefit from it.
If the Trump administration can take fuel from Russia for its country’s farmers and drivers, India too has every right to buy Russian oil for its people’s energy needs. India can present this argument and make a concrete demand for an official waiver under the SRIA. Although the Trump administration has yet to finalize any official concessions to India, America’s own demands reinforce India’s position on the diplomatic stage.
New Delhi is working on its strategy
A third important option for India is that it should not act hastily under any pressure, but proceed with its independent strategy keeping an eye on the situation. New Delhi is currently studying Trump’s announcement and its impact on energy purchases from Russia. India is keeping a keen eye on what way and method Trump finds to import diesel from Russia. India is quietly reviewing its energy deal with Moscow without succumbing to any threats. India will not compromise on its energy security until there is a final decision from Washington.
