The increase in oil prices brought on by the crisis between Russia and Ukraine is “breaking our back,” according to S Jaishankar, India’s minister of external affairs.
After holding bilateral talks, Jaishankar and US Secretary of State Antony Blinken had a joint press conference where they both stated that developing countries have very serious concerns about how their energy demands are being met.
“We have taken the opinion privately, publicly, confidentially and continuously that this conflict is not in anyone’s interest,” he added in reference to the situation in Ukraine. Returning to conversation and diplomacy is the wisest course of action, he added.
We are an economy with a USD 2,000 per capita income, however we are concerned about the price of oil. When the price of oil is out of control and a major problem, “added he. Jaishankar was answering a query regarding a price cap on Russian oil proposed by the G7 nations.
Whenever we have been able to offer something in the past, he continued, “we have been open to it.”
There are some problems right now, he admitted.
“You must realise that the energy markets have already experienced significant stress in recent months. It has been challenging for countries in the global south to compete for scarce energy resources, not simply because of rising prices but of availability.
Our current worry is that the already stressed energy markets will need to relax. Any scenario would be evaluated objectively based on how it impacts us and other nations in the global south. Developing nations are deeply concerned about whether or not their needs for energy security are being met, according to Jaishankar.
Since April, India’s imports of crude oil from Russia have increased more than 50 times, and today they account for 10% of all petroleum purchased from outside.
Prior to the Ukraine War, only 0.2% of India’s total oil imports came from Russia.
Following Russia’s invasion on Ukraine, the Western nations are gradually reducing their energy purchases from Russia.
The G-7 nations and the European Union have proposed an oil price ceiling on Russian crude and processed goods to limit the Kremlin’s earnings because the sanctions imposed by Western countries have had little effect on Russia.
The price cap, according to a statement from the G-7 Finance Ministers earlier this month, was made particularly to cut down on Russian earnings and its capacity to finance the Ukraine War.
In order to limit the price of Russian oil, the US has asked India to join a coalition. However, New Delhi has stated that it will “carefully examine” the request before making a decision.
Jaishankar responded to a different query regarding India’s purchase of military hardware from Russia by saying: “Where we obtain our military hardware and platforms, it is not a matter, which is a new issue or an issue which has significantly changed due to geopolitical situations.”
“We consider all of the potential. We consider the level of capability, the level of technology, and the conditions in which a particular piece of equipment is provided. We make a decision because we think it’s in the best interests of the country “he said.
