Selling Russian oil to India complicates Bidens efforts

Selling Russian oil to India complicates Biden’s efforts

WASHINGTON (AP) — President Joe Biden’s campaign to unite the globe against the Russian invasion of Ukraine is facing not only adversaries like China, but also the world’s most populous democracy, India.

On Friday, an Indian government spokesman said the country would increase its imports of Russian oil, allowing it to boost discounted energy supplies as its economy struggles to recover from the coronavirus pandemic. The official, who was not authorized to speak to reporters and spoke on condition of anonymity, said the latest purchase was 3 million barrels.

While India is not alone in buying Russian energy — some European allies like Germany continue to do so — the move runs counter to Biden’s efforts to isolate the Russian economy through sanctions.

An increase in the flow of oil could further strain relations between Washington and New Delhi, which have already been tested by India’s recent purchase of advanced Russian air defense systems.

The White House is still considering imposing sanctions on India for this purchase. According to a US official familiar with the Biden administration’s discussions, the issue is being viewed from a “different perspective” after Russia’s invasion of Ukraine. The official spoke on condition of anonymity to discuss internal decision-making.

The oil deal is a reminder of how the war in Ukraine created a complex geopolitical balance for Biden. Even as he tries to rally countries to counter Russian encroachment, he also sees India as an important partner to counter China’s growing influence in Asia.

Russia has long been a point of contention in US-India relations, but the White House believes the two democracies have more in common than what separates them.

India is a member of Quad, an international partnership that also includes the US, Australia and Japan, and the leaders of all four countries are due to meet this year in Tokyo.

Although Indian Prime Minister Narendra Modi has a mixed record on human rights, he was invited to attend Biden’s virtual democracy summit in December.

During the summit, Biden called the struggle between democracy and autocracy “the defining challenge of our time.” Modi said India is “ready to join other democracies in this noble endeavour.”

The White House has publicly warned China against defecting to Russia during the war in Ukraine, but has been more circumspect about India’s role.

Asked Friday about India’s oil purchases, White House press secretary Jen Psaki acknowledged that while the US has banned imports of Russian oil, “not all countries have taken that decision.”

“They have different economic arguments,” she said. However, she warned other countries that “the rest of the world is watching your position on this conflict.”

Imports account for 85% of India’s oil needs, and overall demand is projected to rise 8.2% this year to 5.15 million bpd.

According to Indian media, Russia is offering a 20% discount on oil purchases below world benchmark prices.

“We are exploring every opportunity in the global energy market,” Indian Foreign Ministry spokesman Arindam Bagchi said on Thursday. “I don’t think Russia was a big supplier of oil to India.”

India’s relationship with Russia is more about defense than energy. Russia supplies India with only a small part of the oil, but most of the military equipment.

“This is critical to India’s military readiness, especially given the ongoing border crisis with China,” said Richard Rossow, an expert on US-India relations at the Center for Strategic and International Studies in Washington. Twenty Indian soldiers and four Chinese soldiers died less than two years ago in an ongoing territorial dispute over eastern Ladakh.

India abstained from a vote in the United Nations Security Council condemning the invasion of Ukraine, and the Russian embassy in New Delhi responded by saying it “highly appreciates India’s independent and balanced position.”

Ken Juster, a former US ambassador to India, said the South Asian nation “believes in strategic autonomy” and is unlikely to clearly take sides in East-West conflicts.

However, he expects New Delhi to face additional pressure as the war in Ukraine continues.

“India will face an increasingly difficult situation as Russian atrocities become more evident and widespread,” he said. “It’s going to be hard for any country not to come forward and denounce this.”

Biden called the situation unfinished.

Shortly after the Russian invasion began, Biden was asked if India was “fully in sync” with the US regarding Russia.

He replied that “we are in consultations” with India, adding that “we have not fully resolved this issue yet.”

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Sharma reported from New Delhi. AP contributor Aamer Madhani provided information from Washington.