US nudges India to end reliance on Russian oil, arms |
India and the US are holding talks. The US would like to gradually influence India to downgrade its reliance on Russian arms and oil. Reports suggest that Indian representatives may also be looking at other markets to meet their demands as they try to become less dependent on Moscow for arms purchases. A US official reportedly said “India is heavily, heavily dependent on Russia, and that`s something that they did to themselves over some 40 years: first their military and then their energy dependence”. Russian oil has been finding big takers in the Asian market, with the bulk of purchases coming from India and China. Moscow has been offering oil under heavy discounts as rising energy prices as sanctions by the West due to Ukraine war is taking a toll on Russian economy. India meets 83 percent of its oil needs through imports, making it vulnerable to external shocks. Despite pressures from the West, India decided to pursue its interests to meet domestic demands. In 2021-22, India`s oil import bill ballooned to $119 billion, stretching government finances and weighing on the post-pandemic economic recovery. But ever since it started importing from Russia this year, India saved around $43 million. Earlier this month, Indian Finance Minister Nirmala Sitharaman had said that importing oil from Russia was part of the inflation management strategy, and other countries were also doing something similar. India has emerged as the second-largest buyer of Russian crude after China.
|
|
|
|
|
