North India Statesman
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Lucknow, Bureau.Amidst the burning fire of war in the Middle East and the deepening global oil crisis, America has significantly relaxed its tough stance towards India. Amidst the outcry over the supply of crude oil, the White House has given temporary permission to India to buy oil from Russia. The American administration has clarified the reasons why India has been given this special exemption. Confirming this decision, White House Press Secretary Carolyn Levitt praised India and called it a ‘good actor’ on the global stage. This important decision has been taken after the green signal from US President Donald Trump and the Treasury Department.
White House calls India a ‘good actor’
US Treasury Secretary Scott Besant praised India’s stance in a media interview. He clearly said that Indians have behaved very well in this entire matter. According to Besant, when America requested India to stop purchasing Russian oil, she did so. Now America itself is allowing India to do this in order to maintain the current global conditions and supply chain.
After all, why did America give this ‘temporary’ exemption?
The White House has listed three main reasons behind giving this special concession to India. The first reason is old cooperation. Caroline Levitt pointed out that India had in the past stopped purchasing Russian oil out of respect for US sanctions. It is because of his positive attitude that he is being given this concession in the current crisis. The second big reason is to fill the supply gap. Due to the Iran War, there is a huge shortage of oil across the world, and to bridge this shortage, India has been given permission to take Russian oil. The third reason is the cargo present in the sea. America’s argument is that a lot of oil has already been loaded on ships and released into the sea, so Russia will not get any new economic benefit from allowing it to reach India.
Tariff reduced from 50% to 18%, trade agreement worked
There was tension between New Delhi and Washington for some time regarding the purchase of Russian oil. President Trump had imposed a huge tariff of up to 50 percent on India, accusing it of ‘promoting the Ukraine war’. However, recently a new framework of a bilateral trade agreement has been prepared between the two countries, after which America has shown leniency and reduced this tariff to 18 percent. America hopes that after this concession, India will gradually reduce its dependence on Russian oil. At the same time, the Indian government has made it clear that its first priority is to ensure the energy security of its population of 140 crores, hence it has not set any official deadline to reduce the purchases.
Looming danger of blockade of the Strait of Hormuz
This stance of America has softened at a time when there are continuous threats from Iran to block the ‘Strait of Hormuz’. This sea route is the ‘vein’ of the global economy, through which 20 percent of the world’s oil and gas passes. Major oil producing countries like Saudi Arabia, Iraq and Qatar depend on this route for exports. Experts believe that if Iran closes this route, an unprecedented energy crisis could arise for Asian countries, especially India.
Indian government strict on domestic front, focus on LPG supply
Amidst this global turmoil, the Indian government has also geared up on the domestic front. In view of the possible shortage of oil and gas, the Petroleum Ministry has given strict instructions to all the refineries to increase the production of LPG on a war footing. To ensure uninterrupted supply of gas to the common man’s kitchen, the government is strictly reviewing the use of gas in commercial and non-essential purposes. Apart from this, the government has also constituted a special committee to find a quick solution to any problem related to gas shortage.
