Why in the News?
India has cautioned against “double standards” in response to a U.S. Bill, the Russian Sanctions Act of 2025, which proposes 500% duties on countries, including India, that buy Russian oil.
Why has India opposed the proposed U.S.-Russia Sanctions Act, 2025?
- Energy Security: India opposes the Act as it threatens its access to affordable energy from Russia, which is crucial for domestic needs. India imports a significant portion of its crude oil from Russia at discounted rates, helping stabilize fuel prices.
- Strategic Autonomy: India defends its foreign policy independence and rejects external pressure on sovereign decisions.
- Selective Sanctions: India criticizes the Act for reflecting geopolitical double standards, where some nations are penalized while others are exempt. Eg: While India faces scrutiny, European countries continue importing Russian gas without facing similar sanctions.
What are the implications of the U.S. Act on India’s energy security and oil imports?
- Disruption of Oil Supplies: The Act may lead to restrictions on Indian companies dealing with Russian energy firms, affecting oil flow. Eg: Indian refiners like Indian Oil Corporation may face hurdles in continuing long-term contracts with Rosneft.
- Rising Energy Costs: Reduced access to discounted Russian oil can increase India’s energy import bills and domestic fuel prices. Eg: Without Russian discounts, India may rely more on Middle Eastern oil, which is often costlier.
- Supply Chain Uncertainty: The Act creates geopolitical instability, making energy supply chains more volatile for India. Eg: Any secondary sanctions could deter shipping firms or insurers from facilitating India-Russia oil trade.
How has India diversified its crude oil sources in response to geopolitical pressures?
- Increased Imports from the U.S. and Latin America: India has strengthened ties with non-traditional suppliers to reduce overdependence on West Asia or Russia. Eg: Crude oil imports from the U.S. rose from 0.9 million tonnes (2017) to over 10 million tonnes (2023).
- Use of Spot Markets and Diversified Contracts: India leverages spot purchases and signs long-term deals with diverse countries to ensure supply security. Eg: Indian Oil and BPCL have signed deals with Brazil’s Petrobras and Mexico to broaden sourcing.
- Investments in Overseas Oil Assets: India is acquiring stakes in oil fields abroad to ensure equity oil and reduce market vulnerability. Eg: ONGC Videsh holds stakes in projects in Sudan, Mozambique, and Venezuela, ensuring strategic access.
Why has India not resumed oil imports from Iran despite Tehran’s requests?
- U.S. Sanctions on Iran: India halted Iranian oil imports after the U.S. withdrew from the JCPOA in 2018 and reimposed sanctions. Eg: In 2017-18, Iran was India’s third-largest oil supplier, but imports dropped to zero by mid-2019 due to U.S. pressure.
- Risk of Secondary Sanctions: Engaging with Iran could expose Indian companies to secondary sanctions, disrupting financial transactions and insurance cover. Eg: Indian refiners like IOC and MRPL stopped imports fearing blocked dollar transactions and shipping challenges.
- Awaiting Nuclear Deal Revival: India prefers to wait for revival of the Iran nuclear deal to restore oil trade under an international framework. Eg: Talks on JCPOA revival have stalled, making Indian policymakers cautious despite Iran’s open invitation.
How are deportations of Indian nationals affecting India-U.S. diplomatic relations?
- Strain on Bilateral Relations: Frequent deportations of Indian nationals without adequate communication cause diplomatic tension. Eg: In 2023, over 2,500 Indians were deported from the U.S., prompting MEA to seek clarification over due procedures.
- Concerns over Human Rights: Reports of poor detention conditions and lack of consular access raise human rights concerns. Eg: Indian consulates in the U.S. flagged cases where detainees were held in unsanitary facilities, leading to formal protests.
- Impact on Consular Cooperation: Large-scale deportations increase the burden on India’s consular services, affecting coordination and trust. Eg: The sudden deportation of 60 Indians in early 2024 led to delays in documentation and reintegration, requiring urgent diplomatic intervention.
Way forward:
- Strengthen Consular Coordination: Enhance real-time communication between Indian missions and U.S. authorities to ensure due process and humane treatment of deportees.
- Negotiate a Bilateral Framework: Establish a formal agreement on deportation procedures, ensuring transparency, timely consular access, and respect for individual rights.
Mains PYQ:
[UPSC 2018] In what ways would the ongoing US-Iran Nuclear Pact Controversy affect the national interest of India? How should India respond to this situation?
Linkage: The article highlights that the U.S. is considering imposing a 500% ad valorem duty on countries, including India, that purchase Russian oil, uranium, natural gas, or petroleum products through the proposed Russian Sanctions Act, 2025. This question is highly relevant as it directly parallels the geopolitical dynamic and dilemma faced by India regarding its energy imports amidst external pressure and sanctions, which is the core theme of the article.
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