Words and warning: What US has told India about economic ties with Russia

External Affairs Minister S Jaishankar said on Wednesday if New Delhi has chosen a side in the Ukraine conflict, it is that of peace. His statement marks India’s diplomatic nuance in dealing with long-time ally Russia, which is under Western sanctions for invading Ukraine.

India’s reluctance to criticise Russia, or cut off economic and defence ties, has not impressed the US. The White House, the State Department, and the US National Security Council have reached out to Indian officials, seeking Indian support to pressure Russia.

At a virtual Quad conference late in March, leaders of Australia, Japan, and the US denounced Russia’s invasion. However, Prime Minister Narendra Modi reiterated “the need to return to a path of dialogue and diplomacy.”

India has abstained from key United Nations votes on the crisis, calling instead for an “immediate cessation of violence” and a return to dialogue.

Here are a few instances when the US and India were not on equal terms during the Russia-Ukraine crisis:

India ‘somewhat shaky’ on Russia: Biden

In terms of showing support against the Russian invasion, President Biden said India’s response as being “somewhat shaky”, while speaking at the Business Roundtable’s CEO Quarterly Meeting on March 22.

“The QUAD is, with the possible exception of India being somewhat shaky on some of this. But Japan has been extremely strong, so has Australia, in terms of dealing with Putin’s aggression,” he said.

‘Significant consequences for India’

Biden’s top economic adviser, Brian Deese, said the administration has warned India against aligning itself with Russia, and that US officials have been “disappointed” with some of New Delhi’s reactions to the Ukraine invasion.

The US has told India that the consequences of a “more explicit strategic alignment” with Moscow would be “significant and long-term,” he said.

Warning against the rapid acceleration of purchases

White House economic adviser Daleep Singh, who led efforts to coordinate the Western response to the war, said Washington would not set any red lines about purchasing oil, but warned India against the rapid acceleration of purchases.

There will be “consequences” for any country, including India, that conducts local currency transactions through Russia’s central bank or constructs a payment mechanism that circumvents sanctions against Russia, Singh said while visiting Delhi last week.

Ready to support India in energy imports, but…

White House Press Secretary Jen Psaki in a daily news conference said the US is ready to support India in diversifying its energy imports, reiterating its desire that New Delhi does not purchase oil from Russia amid American sanctions on Moscow for invading Ukraine.

We do not think India should accelerate or increase imports of Russian energy and other commodities even as, obviously, those decisions are made by individual countries, she added. Read it here

Not in India’s ‘best interest’ to invest in Russian equipment

During a Congressional hearing on the annual defence budget, US Defence Secretary Lloyd Austin said it is not in India’s “best interest” to continue investing in Russian military equipment.

He added that US’ requirement going forward is that India downscales the types of equipment that they’re investing in and look to invest more in the types of things that will make us continue to be compatible.

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