India buys oil from Russia. Here are some implications
Second biggest economy in Asia, India buys oil from “sanctioned Russia”. Russia has been sanctioned by America and many European countries, making them boycotting Russia oil. India is currently the third largest energy consuming country in the world, and that speak volumes in this trying times. Now that India importing from Russia may be a big blow to the West. Apart from India being the third largest energy consuming country, it also has a nuclear missile.
There have been reports that India will buy oil and gas from Russia. That was confirmed hours ago as Russia exports oil to India at a discounted price.
India has a population of 1.3 billion people and the world’s third largest importer of oil. If other countries like China, Pakistan etc switch to allegiance with Russia, that will not be a good signal for the west. Prime Minister of Pakistan Imran Khan was in Russia hours into the war. But Pakistan and India have not being in good terms for sometime. The population of China and India alone is more than 3 billion and that number could be a determine factor if both nations become allies. In a two hour video call between Chinese President Xi Jinping and Joe Biden, the American President warned his Chinese counterpart not to supply weapons to Russia. There have been reports that the country would want to supply weapons to Russia on the country’s request. China doing business with Russia while his ally fights Ukraine is unlikely to happen because China is gradually buildinga global dominance and wouldlove to keep that reputation going forward at a slow pace. India and China have been fighting for sometime now in terms of border control and territorial defense. So China working with India is also unlikely to happen which is good news for America.
India imported 360000 barrels a day of oil from Russia in March alone which is nearly four times the 2021 average according to the Financial Times.
The United States is in negotiations with Venezuela, a country holding the world’s highest oil reserve. Iran, Saudi Arabia and Venezuela have half of the world’s 1.55 trillion barrels of oil reserves – reports because Saudi Arabia had turn Biden’s administration down. There are also fears as Venezuela is demanding more from the West but the Latin American country is likely to go along with the United States though it plays with Russia. There have been a sign of vast reshaping of global energy flows since Russia’s invasion of Ukraine. And there have been price hikes at the pumps in America and other parts of the world, raising the cost of living.
Russia depends mush on its oil and gas to run the economy. Almost nothing could work if that sector is crippled by the numerous sanctions. But India importing oil from Russia could be a big turning point for the country to rebuild at a fast pace though it may not be enough.
India and Russia have enjoyed international relations for years in terms of trade, defence and many more. And both countries are not ready to close that chapter.