Page 9 - AsianOil Week 46 2022

AsianOil SOUTH ASIA AsianOil

India wins nine-month

face-off with US

POLICY AFTER months of exerting pressure on India much oil as they have done when the EU stops
not to buy Russian oil, the US appears to have buying Russian oil … They're going to be heavily
The US made a face- ‘blinked first’, conceding that New Delhi is free to in search of buyers. And many buyers are reliant
saving request that decide where it makes its purchases, and in what on Western services."
Indian authorities abide amounts. Indian adherence to what is being referred
by a G7 price cap. In losing the nine-month face-off, however, to as America’s ‘terms and conditions’ in some
the US did still make a face-saving request that quarters to India being given a green light on
Indian authorities abide by an ongoing G7 price Russian imports is not, however, altogether
cap linked to US-led insurance and financial guaranteed.
deals on oil purchases. In response to Yellen’s comments, one Indian
The latest efforts by Washington to bring New official quoted by Reuters countered: "I do not
Delhi into line with US-led efforts at sanction- think we will follow the price cap mechanism,
ing Russia come just a week after India’s Exter- and we have communicated that to the countries.
nal Affairs Minister S Jaishankar indicated his We believe most countries are comfortable with
government would not be halting its purchases it and it is in no one's case that Russian oil should
of Russian crude if doing so did not suit the go offline."
national interests of the Indian people. The official in question was largely repeating
The latest move by US authorities notwith- comments made by Indian Union Minister Har-
standing, in reality little will now affect Russia’s deep Singh Puri in October.
actual ability to sell crude to its biggest two cus- At the time, the minister was in a meeting
tomers: China and India. with the US Secretary of Energy, Jennifer Gran-
Smaller nations, on the other hand, must still holm, after which he said: "India will buy oil from
walk a tightrope between economic ties to G7 wherever it has to for the simple reason that this
nations, and a need for oil at reasonable prices. kind of discussion can't be taken to consuming
As such, most former Russian crude import- population of India ... Have I been told by any-
ers will need to steer clear of outright crude one to stop buying Russian oil? The answer is a
imports from Moscow, although both China and categorical 'no'."
India are thought to be benefiting by selling on In recent months officials in India have faced
their own purchases on occasion. a barrage of public criticism from the West, with
The US official charged with saving face on US President Joe Biden at one point reported as
behalf of the Biden administration was Treasury having asked his Indian counterpart, Prime Min-
Secretary Janet Yellen. ister Narendra Modi, to refrain from increasing
Speaking late last week, Yellen did not appear the level of Russian crude imports.
overly pleased with Washington’s decision to Tempers peaked most notably over the sum-
back down, during an interview with Reuters. mer with External Affairs Minister Jaishankar
When asked, she could only offer a somewhat in August telling the West that India could not
condescending "Russian oil is going to be selling afford spiralling oil prices in his most strongly
at bargain prices and we're happy to have India worded response to date.
get that bargain, or Africa or China. It's fine." As a result, his government continues to
She then went on to add "Russia is going import Russian crude regardless of US requests,
to find it very difficult to continue shipping as openly or otherwise. ™

Week 46 21•November•2022 www. NEWSBASE .com P9