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Subject: International Stories of Key Importance

  • FATF retains Pakistan on its terror funding ‘Grey List’

    The global money laundering and terrorist financing watchdog Financial Action Task Force (FATF) has retained Pakistan on its terrorism financing “grey list”.

    What is the FATF?

    • FATF is an intergovernmental organization founded in 1989 on the initiative of the G7 to develop policies to combat money laundering.
    • The FATF Secretariat is housed at the OECD headquarters in Paris.
    • It holds three Plenary meetings in the course of each of its 12-month rotating presidencies.
    • As of 2019, FATF consisted of 37 member jurisdictions.

    India and FATF

    • India became an Observer at FATF in 2006. Since then, it had been working towards full-fledged membership.
    • On June 25, 2010, India was taken in as the 34th country member of FATF.
    • The EAG (Eurasian Group) is a regional body comprising nine countries: India, Russia, China, Kazakhstan, Kyrgyzstan, Tajikistan, Turkmenistan, Uzbekistan and Belarus.

    What is the role of FATF?

    • Watchdog on terror financing: The rise of the global economy and international trade has given rise to financial crimes such as money laundering.
    • Recommendation against financial crimes: The FATF makes recommendations for combating financial crime, reviews members’ policies and procedures, and seeks to increase acceptance of anti-money laundering regulations across the globe.

    What is the Black List and the Grey List?

    • Black List: The blacklist, now called the “Call for action” was the common shorthand description for the FATF list of “Non-Cooperative Countries or Territories” (NCCTs).
    • Grey List: Countries that are considered safe haven for supporting terror funding and money laundering are put in the FATF grey list. This inclusion serves as a warning to the country that it may enter the blacklist.

    Consequences of being in the FATF black list:

    • Economic sanctions from IMF, World Bank, ADB
    • Problem in getting loans from IMF, World Bank, ADB and other countries
    • Trade sanctions: Reduction in international trade
    • International boycott

    Pakistan and FATF

    • Pakistan, which continues to remain on the “grey list” of FATF, had earlier been given the deadline till June to ensure compliance with the 27-point action plan against terror funding networks.
    • It has been under the FATF’s scanner since June 2018, when it was put on the Grey List for terror financing and money laundering risks.
    • FATF and its partners such as the Asia Pacific Group (APG) are reviewing Pakistan’s processes, systems, and weaknesses on the basis of a standard matrix for anti-money laundering (AML) and combating the financing of terrorism (CFT) regime.

     

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  • Switzerland’s Neutral Foreign Policy

    Switzerland broke its 200-year long neutrality policy to sanction Moscow and its leaders.

    What is the news?

    • Switzerland announced that it would join the European Union (EU) in closing the Swiss airspace to Russian aeroplanes.
    • It also wished for imposing financial sanctions on Russian President Vladimir Putin and other leaders.

    Switzerland’s Policy of Permanent Neutrality

    • The tiny Alpine nation the size of Haryana has had a neutrality policy in place since 1815.
    • Its official website attests to this, noting that “permanent neutrality is a principle of Swiss foreign policy.”
    • Though it serves as the headquarters of several diplomatic missions and as the venue for historic treaties like the Geneva Convention, Switzerland is not a part of the European Union or NATO.
    • Historically, the Swiss had been famed warriors with expansionist ambitions until the 1500s when they lost the Battle of Marignano to the French.
    • The years that followed saw the Swiss shift its foreign policy to that of being an armed impartial state during wartime, a stance which was sorely tested in the decades that followed.

    The World Wars and Switzerland

    • Switzerland shares borders with Germany, France and Italy.
    • During WW II, Switzerland found itself surrounded by Axis forces, with Hitler describing the land-locked territory as “a pimple on the face of Europe”.
    • It used a combination of military deterrence, strategic planning and economic neutrality to hold its own in 1940s Europe.
    • Besides this, the Swiss pursued a policy of armed neutrality, putting into place compulsory military service (which continues till date) to maintain military readiness in event of an invasion.

    Recent deviations

    • Switzerland joined the United Nations as recently as 2002, putting an end to years to debate after 54 per cent of its population voting in favour of the move.
    • The Swiss federal government had said that it had weighed its neutrality and peace policy considerations into account to reach its decision.
    • The Swiss government has initially adopted a traditional and very narrow interpretation of neutrality, which translated to a decision to not issue any sanctions.
    • However, the Swiss parliament and citizens strongly pushed back, arguing that Russia’s massive military aggression cannot be tolerated.
    • This prompted the government to reconsider its position.

     

     

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  • What constitutes a War Crime?

    The International Criminal Court (ICC) in The Hague announced that it would open an investigation into possible war crimes or crimes against humanity in Ukraine.

    What are War Crime?

    • War crimes are defined as serious violations of humanitarian laws during a conflict.
    • There are specific international standards for war crimes, which are not to be confused with crimes against humanity.
    • The definition is established by the Rome Statute of the International Criminal Court (ICC).
    • It is derived from the 1949 Geneva Conventions and is based on the idea that individuals can be held liable for the actions of a state or its military.
    • There is a long list of acts that can be considered war crimes.
    • The taking of hostages, willful killings, torture or inhuman treatment of prisoners of war, and forcing children to fight are some of the more obvious examples.

    How to identify war crimes?

    To decide whether an individual or a military has committed a war crime, international humanitarian law lays down three principles:

    1. Distinction: This principle says that you have to be constantly trying to distinguish between civilian and belligerent populations and objects.
    2. Proportionality: It prohibits armies from responding to an attack with excessive violence. If a soldier is killed, for example, you cannot bomb an entire city in retaliation.
    3. Precaution: It requires parties to a conflict to avoid or minimize the harm done to the civilian population. For example, attacking a barrack where there are people who have said they no longer participate in the conflict can be a war crime.

    Do war crimes constitute to genocides?

    • The UN Office on Genocide Prevention and the Responsibility to Protect separates war crimes from genocide and crimes against humanity.
    • War crimes are defined as occurring in a domestic conflict or a war between two states.
    • However, genocide and crimes against humanity can happen in peacetime or during the unilateral aggression of a military towards a group of unarmed people.

    Discrepancy in defining war crimes

    • In practice, there is a lot of gray area within that list.
    • The laws of war do not always protect civilians from death. Not every civilian death is necessarily illegal.
    • Raids on a cities or villages, bombing residential buildings or schools, and even the killing of groups of civilians do not necessarily amount to war crimes — not if their military necessity is justified.
    • The same act can become a war crime if it results in unnecessary destruction, suffering and casualties that exceed the military gain from the attack.
    • Also civilian and military populations have become increasingly hard to distinguish

     

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  • Asian Infrastructure Investment Bank (AIIB)

    The Beijing-based Asian Infrastructure Investment Bank (AIIB) said it was putting on hold and reviewing all projects in Russia and Belarus.

    About AIIB

    • The Asian Infrastructure Investment Bank (AIIB) is a multilateral development bank with a mission to improve social and economic outcomes in Asia, began operations in January 2016.
    • It aims to stimulate growth and improve access to basic services by furthering interconnectivity and economic development in the region through advancements in infrastructure.
    • AIIB has now grown to 102 approved members worldwide. US & Japan are not its members.
    • It is a brainchild of China. It has invested in 13 member regions.

    Capital and shareholding of AIIB

    • It has authorized capital of US 100 billion dollars and subscribed capital of USD 50 billion.
    • It offers sovereign and non-sovereign finance for projects in various sectors with an interest rate of London Interbank Offered Rate (LIBOR) plus 1.15 % and a repayment period of 25 years with 5 years in grace period.
    • China is the largest shareholder in AIIB with a 26.06% voting power, followed by India with 7.62% and Russia with 5.92% voting power.

     

    Try this question from CSP 2019

    Q.With reference to Asian Infrastructure Investment Bank (AIIB), consider the following statements

    1. AIIB has more than 80 member nations.
    2. India is the largest shareholder in AIIB.
    3. AIIB does not have any members from outside Asia.

    Which of the statements given above is/are correct?

    (a) 1 only

    (b) 2 and 3 only

    (c) 1 and 3 only

    (d) 1, 2 and 3

     

     

    [wpdiscuz-feedback id=”si6cvunasz” question=”Please leave a feedback on this” opened=”1″]Post your answers here.[/wpdiscuz-feedback]

     

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  • Egypt hikes Suez Canal transit fees for ship

    Cash-strapped Egypt increased transit fees for ships passing through the Suez Canal, one of the world’s most crucial waterways, with hikes of up to 10%.

    Suez Canal

    • The Suez Canal is an artificial sea-level waterway in Egypt, connecting the Mediterranean Sea to the Red Sea through the Isthmus of Suez; and dividing Africa and Asia.
    • Constructed by the Suez Canal Company between 1859 and 1869, it officially opened on 17 November 1869.
    • The canal was earlier controlled by British and French interests in its initial years but was nationalized in 1956 by Egypt’s then leader Gamal Abdel Nasser.
    • It extends from the northern terminus of Port Said to the southern terminus of Port Tewfik at the city of Suez.
    • Its length is 193.30 km including its northern and southern access channels.

    Its significance

    • The Suez Canal provides a crucial link for oil, natural gas and cargo being shipping from East to West.
    • About 10% of global trade, including 7% of the world’s oil, flows through the Suez Canal.
    • It provides a major shortcut for ships moving between Europe and Asia, who before its construction had to sail around Africa to complete the same journey.
    • As per a report, the canal is a major source of income for Egypt’s economy, with the African country earning $5.61 billion in revenues from it last year.

    Try this PYQ:

    Q.Between India and East Asia, the navigation time and distance can be greatly reduced by which of the following?

    1. Deepening the Malacca straits between Malaysia and Indonesia.
    2. Opening a new canal across the Kra isthmus between the Gulf of Siam and Andaman sea.

    Which of the statements given above is/are correct?

    (a) 1 only

    (b) 2 only

    (c) Both 1 and 2

    (d) Neither 1 nor 2

     

    [wpdiscuz-feedback id=”3lvew8ij5q” question=”Please leave a feedback on this” opened=”1″]Post your answers here.[/wpdiscuz-feedback]

     

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  • Escaping the global sanctions net

    Context

    A shift is taking place in the business of global dominance and hegemony, from the model of expressing force through troop presence to financial sanctions. It is led by the US and has become recently visible in the US and EU sanctions on Russia.

    How sanctions works

    • Sanctions are designed by the government and implemented by both profit-making and non-profit private enterprises, domestic and international NGOs (including the United Nations).
    • From rule-bound globalism, there is a move to an understanding of the management of individual economies, bound together by multiple networks of investment and trade.
    • This is a global economy of individual rivalries between countries and corporations, continually shifting alliances, and contingencies overtaking assumed structural certainties.
    • A system of licencing: In Afghanistan, financial manipulations from afar in the form of sanctions may result in subjecting trading activities and investment ventures to the approval of the US Treasury through a system of licencing.
    • This may give the US a say in who trades with whom, but already China has found ways of working with or around US sanctions in several countries, including Iran.
    • Confiscation of foreign exchange reserves: Another way of exerting control from afar is through the confiscation of foreign exchange reserves in American banks.
    • Following the withdrawal of the American troops on August 15, the US froze Afghanistan’s foreign exchange reserves of $7 billion deposited in the New York Federal Bank.

    Issues with sanctions

    • An economic lever to China: Sanctions offer economic lever to China in its dealings with the Taliban, to the Chinese state-owned enterprises and private corporations with an opportunity to invest in Afghanistan’s infrastructure, linking it to the Belt and Road project, and in its rich mineral resources of copper, cobalt, and lithium.
    • Implications for India: China could also use this as an opportunity to unite investments in Afghanistan and Pakistan, isolating India.
    • Evading the sanction:  China and Russia, in concert, may provide a way out of the sanctions regime.
    • Possibility for China in Middle Eurasia: Russian military and political escalation to re-institute control over former Soviet regions, including Ukraine, Belarus, and Kazakhstan, and the rapprochement between China and Russia against the West, may open up new possibilities for China in Middle Eurasia.
    • Banning Russia from SWIFT is not effective: Banning Russia from the SWIFT system of international payments is a problem for the global financial system.
    • The Russian economy is more isolated, protected and less reliant on international funding than was the Afghan economy.
    • The impact of any disruption in Russian exports of oil, gas, palladium, wheat and fertiliser at a time when those prices are barely recovering from inflationary pressures caused by Covid-19 disruptions, is likely to offset any leverage the Western sanctions may hope to gain.

    Conclusion

    In the new game, the Western alliance led by the US seems lost in a maze of sanctions, largely ineffective in a global economy, the control of which is eluding its grip.

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  • What is the International Court of Justice?

    Ukraine has filed an application before the International Court of Justice (ICJ), instituting proceedings against the Russian Federation for committing Genocide.

    International Court of Justice

    • The ICJ is the principal judicial organ of the United Nations (UN).
    • It was established in June 1945 by the Charter of the United Nations and began work in April 1946.
    • The court is the successor to the Permanent Court of International Justice (PCIJ), which was brought into being through, and by, the League of Nations.
    • It held its inaugural sitting at the Peace Palace in The Hague, Netherlands, in February 1922.

    Its establishment

    • After World War II, the League of Nations and PCIJ were replaced by the United Nations and ICJ respectively.
    • The PCIJ was formally dissolved in April 1946, and its last president, Judge José Gustavo Guerrero of El Salvador, became the first president of the ICJ.
    • The first case, which was brought by the UK against Albania over concerning incidents in the Corfu channel — the narrow strait of the Ionian Sea between the Greek island of Corfu and Albania.

    Seat and role

    • Like the PCIJ, the ICJ is based at the Peace Palace in The Hague.
    • It is the only one of the six principal organs of the UN that is not located in New York City.
    • The other five organs are:
    1. General Assembly
    2. Security Council
    3. Economic and Social Council
    4. Trusteeship Council
    5. Secretariat
    • The court as a whole must represent the main forms of civilization and the principal legal systems of the world.
    • The judges of the court are assisted by a Registry, the administrative organ of the ICJ. English and French are the ICJ’s official languages.

    Jurisdiction of ICJ

    • All members of the UN are automatically parties to the ICJ statute, but this does not automatically give the ICJ jurisdiction over disputes involving them.
    • The ICJ gets jurisdiction only if both parties consent to it.
    • The judgment of the ICJ is final and technically binding on the parties to a case.
    • There is no provision of appeal; it can at the most, be subject to interpretation or, upon the discovery of a new fact, revision.
    • However, the ICJ has no way to ensure compliance of its orders, and its authority is derived from the willingness of countries to abide by them.

    Judges of the court

    • The ICJ has 15 judges who are elected to nine-year terms by the UN General Assembly and Security Council, which vote simultaneously but separately.
    • To be elected, a candidate must receive a majority of the votes in both bodies, a requirement that sometimes necessitates multiple rounds of voting.
    • Elections are held at the UNHQ in New York during the annual UNGA meeting.
    • A third of the court is elected every three years.
    • The judges elected at the triennial election commence their term of office on February 6 of the following year.
    • The president and vice-president of the court are elected for three-year terms by secret ballot. Judges are eligible for re-election.

    India in ICJ

    • Four Indians have been members of the ICJ so far.
    • Justice Dalveer Bhandari, former judge of the Supreme Court, has been serving at the ICJ since 2012.
    • Former Chief Justice of India R S Pathak served from 1989-91, and former Chief Election Commissioner of India Nagendra Singh from 1973-88.
    • Singh was also president of the court from 1985-88, and vice-president from 1976-79.
    • Before him, Sir Benegal Rau, who was an advisor to the Constituent Assembly, was a member of the ICJ from 1952-53.

    Indian cases at the ICJ

    • India has been a party to a case at the ICJ on six occasions, four of which have involved Pakistan.
    • They are:
    1. Right of Passage over Indian Territory (Portugal v. India, culminated 1960);
    2. Appeal Relating to the Jurisdiction of the ICAO Council (India v. Pakistan, culminated 1972);
    3. Trial of Pakistani Prisoners of War (Pakistan v. India, culminated 1973);
    4. Aerial Incident of 10 August 1999 (Pakistan v. India, culminated 2000);
    5. Obligations concerning Negotiations relating to Cessation of the Nuclear Arms Race and to Nuclear Disarmament (Marshall Islands v. India, culminated 2016); and
    6. (Kulbhushan) Jadhav (India v. Pakistan, culminated 2019).

    Back2Basics:

    BASIS INTERNATIONAL CRIMINAL COURT INTERNATIONAL COURT OF JUSTICE
    Relationship with the United Nations Independent; UN Security Council may refer matters to it Primary judicial branch of the UN.
    Members 105 members 193 members (all members of the United Nations).
    Derives authority from The Rome Statute Charter of the United Nations and the Statute of the International Court of Justice.
    Scope of work Criminal matters – investigating and prosecuting crimes of genocide, crimes against humanity, and war crimes Civil matters- settling legal disputes between the member-states and giving advisory opinions on international legal issues
    Jurisdiction Only the member nations of the ICC, which means around 105 countries. Can try individuals. All the member nations of the UN, which means 193 countries. Cannot try individuals and other private entities.
    Composition 1 prosecutor and 18 judges, who are elected for a 9-year term each by the member-states which make up the Assembly of State Parties with all being from different nations 15 judges who are elected for a 9-year term each and are all from different nations.
    Funding Funded by state parties to the Rome Statute and voluntary contributions from the United Nations, governments, individual corporations, etc. Funded by the UN.

     

     

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  • Inflection point for the West-led global order

    Context

    The Ukraine crisis has come to a head with Russia biting the bullet and launching “a full-scale invasion of Ukraine.

    Russian invasion and response of the West

    • Hours before the invasion, the western countries had imposed a new round of sanctions against Moscow (targeting Russian individuals and banks linked to Mr. Putin’s regime).
    • German Chancellor Olaf Scholz suspended certification of Nord Stream 2, a major gas pipeline between Russia and his nation.
    • The European Union has announced a “massive” package of sanctions.
    • Incoherence in response: the West has been incoherent in its response — not being able to present a united front, and worse, not even speaking the same language at times.
    •  For the West, this has been a moment when it has been found wanting — a lack of imagination, lack of will and lack of leadership, all rolled into producing a lackadaisical response to the one of most serious security crises in decades.
    • France has used this moment of crisis in trying to showcase its own leadership credentials.
    • Lack of trans-Atlantic engagement: It turns out that even Mr. Biden has not been able to build the trans-Atlantic engagement around common objectives to be pursued collectively.
    • Energy dependence: With the EU importing 39% of its total gas imports and 30% of oil from Russia, and with the Central and Eastern European countries being almost 100% dependent on Russian gas, the reasons for internal EU dissonance are not that difficult to fathom.

    Implications for Indo-Pacific

    • Emboldening China: This ineffectual western response has emboldened not only Russia but also China as the focus of the West is in danger of moving away from the Indo-Pacific.
    •  The Russia-China ‘axis’ is only getting stronger as the two nations seem ready to take on the West that seems willing to concede without even putting up a fight.

    Conclusion

    Today, the balance of power is once again in flux, and as China develops a strategic partnership with Russia, the future of the West-led global order will be defined by how effectively it responds to the crisis in Ukraine.

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  • India’s Ukraine dilemma

    Context

    As diplomatic efforts to de-escalate the crisis in Ukraine continue, the time has come for Delhi to devote greater attention to Central Europe, which is at the heart of the contestation between Russia and the West.

    Recognising the role of Central Europe in shaping the geopolitics of Europe

    • Central Europe today has an identity of its own and the political agency to reshape European geopolitics.
    • It is important to remember that Central Europe is no longer just a piece of territory that Russia and the Western powers can divide into “spheres of influence”.
    • A grand bargain between Russia and the West will work only if it is acceptable to Central Europe.

    Need for diplomatic balancing on Ukraine by India

    • As war clouds gather over Ukraine, there is much focus on India’s diplomatic balancing act, its unwillingness to publicly caution Russia against invading Ukraine, and above all its reluctance to defend Ukraine’s sovereignty.
    • This is not the first time that Russia’s approach to Central Europe has put Delhi in a tight corner.
    • The Soviet invasion of Hungary in 1956, and Czechoslovakia in 1968, exposed an important tension in Indian diplomacy.
    • In Central Europe, India’s pragmatism in not offending Moscow (an important partner) runs against the utter unacceptability of Putin’s doctrine of “limited sovereignty”, a continuation of the Soviet era policy of saying that the socialist states must subordinate their sovereignty for the sake of the “collective interests of the socialist bloc”.

    Factors shaping India’s stand

    • Tension with China: The prospective Russian invasion of Ukraine comes amidst India’s military tensions with China and Delhi’s continued dependence on Moscow’s military supplies.
    •  It also comes at a time when Delhi is trying to build an international coalition against China’s brazen attacks on the territorial sovereignty of its Asian neighbours.
    • For the moment, Delhi is in a safe corner by calling for diplomacy in resolving the Ukraine crisis.
    • But if Russia does invade Ukraine, the pressure on India to rethink its position will mount.
    • Any such review must eventually lead to an independent appreciation of the geopolitics of Central Europe.

    Five factors that must shape India’s perspective on the geopolitics of Central Europe

    • 1] No taker for sphere of influence: Russia’s claim for a broad sphere of influence in the region has no takers in Central Europe.
    • 2]Need for political accommodation: While Russia has legitimate security interests in Central  Europe, they can only be realised through political accommodation.
    • Moscow cannot enforce a sphere of influence against the will of its prospective members.
    • 3] NATO as better option: few Central Europeans buy into the French vision for “European sovereignty” and “strategic autonomy”. 
    • They bet that NATO, led by the US, is a better option than a Europe that is independent of Washington.
    • They view with even greater distaste the prospects for Russo-German condominium over Central Europe.
    • 4] Resentment against imposition of political value:While they are eager to be part of the Western institutions, Central Europeans resent any attempt by the US and EU to impose political values that run against their traditional cultures.
    • 5] Sub regional institution: Central Europeans are eager to develop sub-regional institutions that can enhance their identity.
    • The Visegrad Four — Poland, Hungary, Czech Republic, and Slovakia — is one of them.
    • The so-called “Three Seas Initiative” brings together 12 European states running in a vertical axis from the Baltic Sea in the north to the Adriatic and Black Sea in the south.

    Conclusion

    Delhi can’t forever view this critical region through the prism of Russia’s conflict with the West. It must come to terms with its growing strategic significance.

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  • India- Central Asia Relations

    Context

    The inaugural India-Central Asia Summit, the India-Central Asia Dialogue, and the Regional Security Dialogue on Afghanistan in New Delhi — all held over the past four months — collectively indicate a renewed enthusiasm in New Delhi to engage the Central Asian region.

    Significance of Central Asia for India

    • India has limited economic and other stakes in the region, primarily due to lack of physical access.
    • And yet, the region appears to have gained a great deal of significance in India’s strategic thinking over the years, particularly in the recent past.
    • New geopolitical realities: India’s mission Central Asia today reflects, and is responsive to, the new geopolitical, if not the geo-economic, realities in the region.

    Factors driving India’s engagement

    • One of the factors driving this engagement and shaping it is the great power dynamics there.
    • Withdrawal of the US from Afghanistan: The decline of American presence and power in the broader region (due primarily to the U.S. withdrawal from Afghanistan) has led to a reassertion by China and Russia seeking to fill the power vacuum.
    • India-Russia relations: Moscow considers India to be a useful partner in the region: it helps it to not only win back New Delhi, which is moving towards the U.S., but also to subtly checkmate the rising Chinese influence in its backyard.
    • For the U.S., while growing India-Russia relations is not a welcome development, it recognises the utility of Moscow-New Delhi relations in Central Asia to offset Beijing’s ever-growing influence there.
    • India’s dilemma:  In the wake of the U.S. withdrawal from Afghanistan, New Delhi faces a major dilemma in the wider region, not just in the pre-existing theatres like the Line of Control and the Line of Actual Control.
    • India’s China challenge: India in the region might get further hemmed in due to the combined efforts by China, Pakistan and Taliban-led Afghanistan.
    • If so, it must ensure that there is no China-led strategic gang up with Pakistan and the Taliban against India in the region, which, if it becomes a reality, would severely damage Indian interests.
    • Consolidation of Afghan policy: India’s engagement of Central Asia would also help it to consolidate its post-American Afghan policy.
    • Now that the Taliban have returned to Kabul, New Delhi is forced to devise new ways of engaging Afghanistan.
    • That’s where the Central Asian Republics (CARs) and Russia could be helpful. 
    • The announcement of a Joint Working Group on Afghanistan during the summit between India and the CARs is surely indicative of such interest.

    Russia’s prominence

    • In India’s current vision for a regional security architecture, Russia appears prominent
    • Countering China: By courting Russia — its traditional partner, also close to China and getting closer to Pakistan — to help it re-establish its presence in the Central Asian region, India is seeking to work with one of the region’s strongest powers and also potentially create a rift between China and Russia.
    • Joint defence production by India and Russia has been on the rise and the CARs could play a key role in it.
    • India’s non-critical stance on developments in Ukrain and Kazakhstan: This growing India-Russia partnership also explains India’s non-critical stance on the developments in Ukraine and Kazakhstan.

    Challenges in India’s engagement with Central Asia

    • China’s dominance in the region:  China, which shares a land border with the region, is already a major investor there.
    • Iran’s role: An even bigger challenge for India may be Iran.
    • India’s best shot at reaching the CARs is by using a hybrid model – via sea to Chabahar and then by road/rail through Iran (and Afghanistan) to the CARs.
    •  So, for New Delhi, the ongoing re-negotiations on the Joint Comprehensive Plan of Action are of crucial importance.
    • While Iran getting close to the West is not preferred by Russia (but preferred by India), if and when it becomes a reality, India would be able to use it to its advantage and join Russia in engaging the CARs.
    • Delivering on the commitment: Most importantly, India will have to walk the talk on its commitments to Central Asia.
    • Does it have the political will, material capability and diplomatic wherewithal to stay the course in the region?

    Conclusion

    India’s renewed engagement of Central Asia is in the right direction for the simple reason that while the gains from an engagement of Central Asia may be minimal, the disadvantages of non-engagement could be costly in the longer run.

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