Abhishek Vij
Ever since President Trump’s presidency began in the United States, his only insistence has been that we stop purchasing crude oil and weapons from Russia. Instead, we should purchase oil and weapons from the United States. Because the United States is a wealthy and powerful country, Trump has punished India by imposing a 50 percent tariff, including a 25 percent standard tariff and a 25 percent penalty tariff, if India does not end its oil and weapons purchases from Russia. Trump has repeatedly threatened that if India does not stop oil and weapons purchases, this tariff rate could rise to 100 percent. Trump’s stance on international trade is completely illogical.
In India, from the government to the public, everyone refuses to accept this. Russia has always helped India in difficult times, although we cannot say the same for China and Pakistan. Even now, from Prime Minister Modi to the country’s businessmen, everyone wants to maintain their trade relations with Russia. Take the issue of oil purchases: Trump has imposed sanctions on four Russian oil companies. Among these is Rosneft, India’s largest oil supplier, which supplies 45% of India’s oil.
This company collects oil from smaller companies and sells it to India. India has decided to stop trading with these large companies. Indian refineries have stopped placing orders with these large companies to appease the US. However, Indian Oil Corporation maintains that it will not completely stop purchasing Russian oil.
We will only stop purchasing oil from companies or supply chains that are sanctioned. However, we will continue to purchase oil from non-sanctioned entities in Russia that comply with the price limits in the trade exchange. This involves finding alternative ways to purchase oil. Furthermore, India is also beginning a new chapter in its economic relations with Russia. The US cannot impose any sanctions on this because this is a mutual policy agreement between India and Russia.
The United States’ reluctance to enter similar agreements underscores India’s freedom to deepen strategic ties with Russia. India’s partnership with Russia to produce civilian aircraft domestically is a significant example of this, with its aerospace sector forging ahead through independent collaboration.
More than 200 SJ-100 aircraft are currently in use by more than 16 commercial companies, but through imports. Now, a flight plan has been developed under which these short-range, twin-engine, small aircraft will be manufactured in India. Russia has previously shared its processes and production methods for weapons. We are developing the S-400 air defense shield under this agreement. India is rapidly becoming self-reliant in security. Now this agreement with Russia is another step towards self-reliance for India.