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Opinion

Why Has US Imposed Sanctions On Indian Firms Now, After Overlooking Russian Oil Imports?

Earlier the US ignored the call to slap India with economic sanctions after the state-owned oil companies purchased crude oil from Russia, violating the provisions of the economic sanctions imposed on the Vladimir Putin-led regime.

US and Indian Flags
US and Indian Flags

India – US bilateral relationship is at a crossroads once again. With Washington including 19 Indian companies and two individuals into the list of 400 entities, on which the State Department has imposed sanctions, the tensions have escalated, though none of the two sides has said anything publicly.

It is a matter of greater concern also because the sanctions have come after an Indian delegation met the US officials on the issue of the alleged role of India in the so-called attempt of murder of Sikh militant Gurpatwant Singh Pannun on US soil.

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Did Indian Firms Help Russia?

These Indian companies have been accused of helping Russia with military hardware, software, and other equipment in its war against Ukraine. If media reports are to be believed, these firms have supplied technology and equipment of dual use.

Also Read: US-India Ties At Crossroads: Will Washington Bow To Canadian Pressure, Slap Sanctions On New Delhi Over Khalistani Leader’s Killing?

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Though the Indian firms may argue that they have provided Moscow with civilian products by the deal signed before the Russia-Ukraine War erupted in February 2022, analysts believe these were of dual use, they could be used for military purposes as well as civilian ones.

No Action When India Bought Crude From Russia

Earlier the US ignored the call to slap India with economic sanctions after the state-owned oil companies purchased crude oil from Russia, violating the provisions of the economic sanctions imposed on the Vladimir Putin-led regime.

When the EU member states accused New Delhi of going against the sanctions, India reminded them that many of them bought crude oil and natural gas much more than it did.

Also Read: Who Is Gurpatwant Singh Pannun? Know About Man Fueling India-Canada Diplomatic Crisis

Going one step further, some of the Indian oil companies bought crude oil from Russia, processed it, and sold diesel and petroleum to many countries, including those from the 27-nation European bloc.

The Joe Biden administration resisted the urge of the anti-India caucus to impose economic sanctions on Indian companies, at least some of them. It argued that India being an ally, it would not be in the US interest to punish it for breaching the sanctions. It became a bipartisan issue to the extent that Donald Trump, who kept on raising the ‘US First’ and ‘Make America Great Again’ slogans, did not rake up this issue.

Why Did US Crack Whip Now?

What had happened that Washington now cracked the whip?

If media reports are to be believed, it was Washington, that shared its intelligence input on the alleged plot to kill Gurpatwant Singh under the Five Eyes agreement, a deal signed by the US, the UK, Canada, Australia, and New Zealand.

Also Read: Has Violence Become ‘New Normal’ In US Politics? Assassination Attempts On Donald Trump Signal Dangerous Trend

Later Ottawa said the murder of Sikh militant leader Hardeep Singh Nijjar and the attempt to kill Gurpatwant Singh were the two parts of a common plot. 

Democrat’s Way To Counter Republican’s Campaign?

Another important reason for imposing sanctions on 19 Indian companies is that the Biden administration wants to send a strong to the world community just before the nation goes to polls on November 5. Political analysts believe one of the reasons for releasing the list now is for domestic and political compulsions.

Democrat President Joe Biden perhaps wants to take the air out of Republican candidate Donald Trump’s campaign based on ‘America First’ and ‘Make America Great Again’. The US President has sent a strong signal to the political opposition as well as the masses that he won’t allow any concession to anyone who is detrimental to the US interests.

Washington Sends Strong Signals

Secondly, after more than two years of the beginning of the Russia-Ukraine War, there is no let-up. The US wants to send strong signals to other countries that it would not spare anyone who breaches the economic sanctions imposed on Russia.

Washington also wants to send a strong signal to Indian firms that they should not get involved in hobnobbing with Russia. 

Will US Impose Sanctions On EU States?

Political analysts question if the US would also impose sanctions against those who would buy fuel from Russia in the forthcoming winter season. Almost entire Europe buys natural gas from Russia. Some of these countries, like Germany, Poland,

France, Hungary, and the Czech Republic depend heavily on Russian natural gas during winter. Will they not buy gas this winter or will Washington slap sanctions on them? Interestingly, most of these countries are also members of the North Atlantic Treaty Organisation.

Will they be thrown out of the trans-Atlantic organization?

HISTORY

Written By

Pramode Mallik


Get Breaking News First and Latest Updates from India and around the world on News24. Follow News24 on Facebook, Twitter.

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