India Warns Against ‘Double Standards’ Over Russian Oil: A UPSC Perspective

By Suryavanshi IAS

📌 Introduction

India, on July 17, 2025, strongly cautioned against the “double standards” shown by Western powers, particularly the U.S., in the backdrop of proposed punitive tariffs on nations purchasing Russian oil. With global geopolitical tensions escalating, India finds itself navigating a complex terrain of energy security, strategic autonomy, and diplomatic balance.

This blog explores the background, data, impacts, and forward path—essential for UPSC Mains GS II (International Relations) and GS III (Economic Development).

🕰️ Historical Background

1. Russia-Ukraine War (Since Feb 2022)

The ongoing war has led to extensive sanctions imposed by the U.S. and EU on Russia. These include bans on oil, natural gas, coal, and military exports.

2. India’s Neutral Stance

India, since 2022, has maintained a neutral position, abstaining from UN votes, while increasing oil imports from Russia due to discounted prices.

3. Trump’s Previous Sanctions (2017–2021)

India had stopped importing oil from Iran and Venezuela under U.S. pressure.
Now, with Trump back in office, his administration is attempting to tighten its grip on Russia's economic links globally.

📊 Key Data Points

Indicator	Value
Share of Russia in India’s Oil Imports (Feb 2025)	38%
Share of Russia in China’s Oil Imports	~50%
Share of Russia’s Oil Exports to EU	~6%
Number of countries India buys oil from (2025)	~40
Indian Nationals Deported from U.S. (Jan 20 – July 15, 2025)	1,563

Source: Ministry of External Affairs (India), Energy Ministry.

🌍 Current Developments

🛢️ The Russian Sanctions Act, 2025

Introduced by Sen. Lindsey Graham, backed by President Donald Trump.
Proposes 500% import duties on Russian oil-buying nations.
Secondary tariffs of 100% threatened for non-compliant nations.

🛡️ NATO Warning

NATO Secretary-General Mark Rutte issued a stern warning to India, China, and Brazil, urging them to pressure Russia to end the war or face economic retaliation.

🇮🇳 India’s Response

MEA Spokesperson Randhir Jaiswal: Criticized "double standards" in global energy trade.
Petroleum Minister Hardeep Singh Puri: Asserted India’s diversified energy basket and commitment to strategic autonomy.

🧩 Analysis: Why the ‘Double Standards’ Remark?

🔍 Hypocrisy in Energy Trade

EU nations continue to buy LNG and pipeline gas from Russia.
European refiners import processed fuels from Indian refiners (e.g., Nayara Energy), indirectly using Russian oil.
U.S. is targeting Global South countries, but sparing Western corporations and allies engaged in similar trade.

🔍 Strategic Autonomy

India prioritizes its energy security and aims to make sovereign economic choices without falling prey to superpower pressure.

🏭 Impact on India

✅ Economic

Inflation risks if Russian crude becomes unavailable or expensive.
Higher logistics and refining costs.
Threat to fiscal deficit and current account balance.

✅ Diplomatic

Strain in India-U.S. ties, especially amidst:
- Ongoing FTA discussions.
- Deportation talks of undocumented Indian immigrants.
- Access demands for U.S. dairy, GM crops, and tech trade.

✅ Strategic

Potential opportunity for India-Russia and India-China alignment on oil and trade resistance.
India may deepen ties with Iran or Central Asia if Russian oil becomes untenable.

🧭 Way Forward

🔄 Diversification Strategy

India already sources crude from over 40 countries—a trend that must continue with greater push toward West African, U.S., Latin American, and Middle Eastern oil.

🤝 Strategic Partnerships

Re-engage Iran post-JCPOA revival for energy imports.
Collaborate with BRICS nations on alternate energy payment systems like rupee-ruble or digital currencies.

📜 Legal and Trade Defense

India can:

Challenge unfair trade tariffs at WTO.
Invoke clauses under bilateral investment treaties (BITs) if sanctions impact Indian refineries or firms.

🏗️ Focus on Domestic Energy

Accelerate green energy transition, solar, hydrogen.
Expand domestic oil and gas exploration (e.g., ONGC projects in eastern coast).
Strengthen strategic petroleum reserves.

📘 UPSC Mains Practice Questions

GS Paper II:

"Discuss the challenges India faces in maintaining strategic autonomy in foreign policy in the context of Western sanctions and global energy security."

GS Paper III:

"Evaluate the impact of secondary sanctions on India’s energy economy and suggest viable policy measures."

🧠 Keywords for Notes

Strategic Autonomy
Secondary Sanctions
Russian Sanctions Act 2025
India-U.S. Trade Relations
Energy Security
Global South vs West
WTO Trade Tariffs
Oil Diversification
De-dollarization
Geopolitical Realignment

1. Strategic Autonomy

Definition:
The ability of a nation to pursue its national interests and make independent foreign policy decisions without being influenced or coerced by other states or global powers.
📌 In India’s context, it means maintaining ties with diverse countries (like Russia, U.S., Iran) based on national interest, even under global pressure.

2. Secondary Sanctions

Definition:
Sanctions imposed not directly on the targeted country, but on third-party countries, companies, or individuals that do business with the sanctioned nation.
📌 Example: The U.S. threatens secondary sanctions on India for purchasing oil from Russia, even though India is not under primary sanctions.

3. Russian Sanctions Act, 2025

Definition:
A proposed U.S. legislation introduced in 2025 (backed by President Donald Trump) to impose heavy duties (up to 500%) on countries trading with Russia, particularly in oil, gas, and coal. It includes secondary sanctions for non-compliance.
📌 Targeted countries include: India, China, and Brazil.

4. India-U.S. Trade Relations

Definition:
The bilateral economic relationship between India and the United States, involving trade in goods, services, investment, technology, and labor mobility.
📌 Key issues: Tariffs, GM crops, dairy imports, digital trade, visa policies, and energy cooperation.

5. Energy Security

Definition:
A country’s ability to secure uninterrupted access to affordable, reliable, and clean energy sources to support economic growth and national security.
📌 For India, it means diversifying suppliers (like Russia, Gulf, U.S.), developing domestic capacity, and building reserves.

6. Global South vs West

Definition:
A geopolitical divide between developing countries (Global South—like India, Brazil, South Africa) and the developed Western powers (like the U.S., EU).
📌 Contextual usage: Western sanctions on Russia are viewed by many Global South countries as hypocritical and harmful to their own economic interests.

7. WTO Trade Tariffs

Definition:
Tariffs (import/export duties) that must comply with World Trade Organization (WTO) rules, which prohibit arbitrary, protectionist or discriminatory taxes unless justified under specific clauses (like national security).
📌 India may challenge the proposed U.S. tariffs on Russian oil trade at the WTO.

8. Oil Diversification

Definition:
A strategy by which a country reduces dependence on a single or few oil suppliers by importing crude oil from multiple countries to ensure stable supply and price.
📌 India now imports oil from over 40 countries to reduce geopolitical risk.

9. De-dollarization

Definition:
The process of reducing dependence on the U.S. dollar for international trade and financial transactions, especially between countries targeted by U.S. sanctions.
📌 India and Russia have discussed rupee-ruble trade mechanisms as part of this trend.

10. Geopolitical Realignment

Definition:
A shift in global power structures or alliances, usually due to wars, trade policies, technological change, or political decisions.
📌 Example: Closer cooperation between BRICS nations or the Global South resisting Western-led sanctions marks a geopolitical realignment.

🔚 Conclusion

India stands at a strategic crossroads, defending its energy needs and sovereign choices amidst renewed global power politics. Navigating this phase requires a mix of firm diplomacy, economic prudence, and strategic diversification. For UPSC aspirants, this evolving issue offers a real-time example of 21st-century diplomacy and economic statecraft.

Thursday, July 17, 2025