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India Shines At Samarkand SCO Summit

The 22nd summit of the eight-nation Shanghai Cooperation Organisation  (SCO) took place in Uzbekistan’s capital Samarkand, last week. The summit was held amid the growing geo-political turmoil set-off by the Russian invasion of Ukraine and China’s aggressive military posturing in the Taiwan Straits.

China which initiated this regional grouping as Shanghai Five in 1996, has transformed the forum into an influential grouping of 8 nations, with many more like Iran to join as a permanent member and diverse countries like Saudi Arabia, Egypt, Turkiye, Belarus and Mongolia being given Observer status, which shows its transformation into an influential regional forum, besides challenging to other western regional alliances.

In his address at the summit, PM Modi obdurately touched every relevant aspect of the current geo-political situation. He urged SCO to strive to develop reliable, resilient and diversified supply chains in the region. For this, better connectivity will be required, besides giving full rights of transit to each other, he asserted, in a veiled reference to Pakistan. He also batted for making India a regional manufacturing hub. On tackling the challenges of food security, he spoke of India’s efforts to popularise millets as an alternative and cheap option.

In a speech that was otherwise free from references to India’s regional issues on terrorism with Pakistan and on territorial sovereignty with China, Mr. Modi called for greater cooperation in the Eurasian region. He also focused on initiatives on manufacturing that India is willing to pilot in the next year, when India assumes the chair of the SCO and hosts the Summit in mid-2023.

Modi-Xi Jinping meeting

The most important meeting from India’s standpoint was a possible meeting between Prime Minister Modi and Chinese President Jinping. Everyone wondered whether roadblocks have been cleared and temperaments cooled after the recent success of commander level talks between two countries on the issues of Chinese aggression in Indian Ladakh region in May 2020.

But, officially the MEA mentioned no such meetings. In fact, Samarkand offered the perfect opportunity for two leaders to reset the ties. But there seemed little willingness from the two sides, to compromise. In fact, if the reports are to be believed, the exchange between the two leaders, reminded one of the cold treatment meted out by Mr Modi to former Pakistan’s prime minister, Nawaz Sharif at the 2014 SAARC summit, though it eventually ended with a handshake at the last moment, but nothing such happened in Samarkand. But the moot question here is whether China is in a mood to mend ties with India?

Well, it seems no, not at the moment perhaps. Modi and Xi have met twice earlier but that is not enough to read each other’s thoughts and also make a convincing and principled case, though both the countries stand to gain much economically, if ties are improved.

Foreign Secretary Vinay Kwatra, when asked about a meeting that never happened said that he did not “think there is anything more to read into that”.

Modi-Putin meeting

PM Modi’s bilateral meeting with Russian President Putin at the summit also received a lot of attention. The two leaders shared the customary diplomatic greetings, with Modi specifically emphasising that the modern era was not a time of war. According to reports, Putin acknowledged India’s position on the Ukrainian conflict and reaffirmed his commitment to a speedy resolution.

India and Chinese leaders expressing their concerns directly with the Russian leader about the war in Ukraine is reflective of global concerns about the effects of its aggression, U.S. Secretary of State Antony Blinken said last Friday.

The mainstream American media on Friday praised Prime Minister Narendra Modi for telling Russian President Vladimir Putin that this is “not the time for war” in Ukraine. It was the lead story on the webpages of both The Washington Post and The New York Times, and was widely carried by the mainstream American media.

Modi-Erdogan bonhomie

Among other impromptu meetings was the one important one between PM Modi and Turkiye’s President Recep Tayyip Erdogan, which was held unannounced on Friday.  After the meeting, Modi underlined that the focus was on economic ties between the two countries.

The MEA, in a statement, described the meeting as a review of current India-Turkiye relations. While noting the increase in recent years in economic relations, particularly bilateral trade, it acknowledged the potential for further enhancement of economic and commercial partnerships. Erdogan last visited India in 2017.

While India-Turkiye’s economic and commercial cooperation constitutes an important dimension of the bilateral relationship, diplomatic ties have been adversely impacted over Turkiye’s public criticism of the revocation of Article 370 in Jammu and Kashmir and the February 2020 riots in north-east Delhi.

Modi-Raisi meeting, looking ahead

Another important meeting at Samarkand was between PM Modi and Iranian President Ebrahim Raisi. Both the leaders took the opportunity to discuss boosting ties in areas like energy, commerce and connectivity. They also reviewed progress of the Shahid Behesti terminal at Chabahar Port and there are indications that the Iranian president also discussed a new mechanism to supply crude oil to India on rupee payment basis, instead of American dollars. This may bring the two countries closer on the trade and economic fronts.

The manner in which Mr Modi and his diplomatic team carried the business at Samarkand shows the maturity and coming of age of the Indian diplomacy under PM Modi. India will be hosting the next SCO Summit in 2023, and this will offer Mr Modi an opportunity to develop the organisation into a more meaningful and cohesive organisation. A fact evident by the number of countries, which are desirous of joining it, due to its regional potential.

Ukraine Conflict: India’s Global Moment

The present-day complexities are best underscored by the impact, mostly negative, of mood and events back home whenever and wherever a leader goes abroad. The host is also not shielded from domestic developments. This is becoming routine, when even a country’s elections can be, and are, influenced by foreign governments and leaders. Ask Hillary Clinton.

When Prime Minister Narendra Modi hosted then United States President Donald Trump in February 2020, Delhi was witnessing unrest in some of its areas and Covid-19 was sweeping in. In April 2022, when Modi received Britain’s Boris Johnson – beginning with Ahmedabad, again – sectarian violence marred observation of Hindu religious festivals and the Muslims’ holy Ramzan, in many provinces. The civic authorities, allegedly in retaliation, followed up with anti-encroachment drives, demolishing the properties of many alleged trouble-makers.

Despite being welcomed by a million people in Ahmedabad and the political support Modi had extended for the impending American presidential elections, the Trump administration (like predecessor Obama’s) was critical of India. Johnson, embroiled in the ‘Partygate’ scandal back home, was keen to project his twice-postponed India visit as a success. He fobbed off media query if he would raise the demolition issue with Modi by speaking glowingly of India’s democratic credentials.

Johnson clinched the free trade agreement (FTA) crucial for a post-Brexit Britain in need of greater trade opportunities. India and Britain are now committed to sign one before this year-end. Big deal, although India recently signed FTAs with Australia and the UAE.

As for Ukraine, Johnson praised Modi, whom he called his “khaas dost”, for privately telling off Russia’s Vladimir Putin against the latter’s military misadventure. He was obviously peppering over India’s dogged refusal to condemn Putin’s action with Teflon-like posturing, brazenly trading in oil with a sanctioned Russia.

Johnson chose not to needle Modi on Ukraine, rightly sensing that India would not budge from its highly nuanced tight rope ride. He avoided being yet-another European come to lecture India. He remembered that Russian Foreign Minister Sergey Lavrov’s India trip was preceded by frantic visits of several Western delegations, including US Deputy National Security Advisor Daleep Singh and his own Foreign Secretary Liz Truss, whose charm offensive persuading India for tougher action on Russia failed. The European Commission Chief Ursula von der Leyen, chief guest for the inaugural session of the 7th edition of the high-profile Raisina Dialogue was patiently heard. Period.

With Johnson, the diplomatic ball was back in Britain. The BBC, still revered as the ultimate in media freedom and objectivity, at least in the former British colonies, belatedly ran four programmes on bulldozers at work in India. The memory of its listeners/viewers is not too short to be reminded of Iraq’s invasion in 2003, and/or of the massive build-up blitz each time there has been a conflict in the Gulf region. Is the British Government using BBC to boost its foreign policy goals?

But why single out BBC when governments across the world are doing their worst to control mainstream media, and join the social media discourse that they cannot control? The Indian TV channels (almost 800 of them doing 24×7 news dissemination) have long left the BBC hallow and many go for more-brazen-the-better style of the American Fox. Last week, India’s Ministry of Information and Broadcasting felt compelled to issue an ‘advisory’ to curb sensational coverage of both, the bulldozer drive at home and the war in Ukraine. How the two got clubbed is unclear.

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This is definitely India’s ‘global’ moment. Modi will be in three world capitals next month. New Delhi has witnessed an unusual flurry of visitors. There has been much talking-to, though no talking-down, to one of the world’s largest markets for anything saleable.

Tutorials in diplomacy have covered a wide range from fear of India losing place at the democratic high table to economic sanctions, to sly lessons in international morality to choose-your-friends-for-crises, to direct reminders of threats from diplomatic and on-the-land border with China. India is also told that if you worry only about your neighbours and/or of hallowed past with a now-defunct Soviet Union, then you do not deserve to be on the global high table.

India is not alone in South Asia, but is certainly the most-talked about. Its neighbours have taken their own positions on Ukraine keeping in mind their history, economy and the big-power rivalry playing out. Some have maintained a neutral position, while others have unequivocally opposed Russia.

The one who miscalculated, repeatedly and continues to do so, is Pakistan’s Imran Khan. He landed in Moscow at the most inopportune moment when Putin had just launched the Ukraine campaign, and called it “exciting times.” He turned America’s diplomatic tick-off into a ‘foreign conspiracy’, using it to escape the domestic fire. He got burnt, both ways, and lost power. Neither Putin, nor the Americans, could have anticipated this.

Foreign policy rarely impacts India’s domestic scene. The discussion in Parliament brought forth a broad support for the government from an opposition inevitably critical of most of its domestic policies.

Opposition old-timers have talked of non-alignment, but the government does not, for obvious reasons. It would incense the Westerners who still consider it ‘immoral’ a la Dulles. Also, using the ‘N’ word would mean invoking one of its founders, Jawaharlal Nehru, whose name is a no-no. 

Of course, to call the current approach non-aligned would be misleading. Away from Ukraine, India is aligned as part of the Quad, is upset with China and always upset with the latter’s ally Pakistan. With all that comes the growing rapport with the West and arms from Israel.

While Ukraine lasts, India’s role in the BRICS and the Shanghai Cooperation Council remains virtually suspended. But it ensures that should Beijing activate the border, Russia would lean on it.

External Affairs Minister S Jaishankar, perceived as ineffective on Afghanistan when the US evacuated last year, has found his voice, boldly asking the Western critics where were they during that crisis.

Ukraine resonates in a way that divides generations. Many cherish memories of the Soviet Union, but many more think that Moscow, although wrong in invading Ukraine, has been severely wronged by a triumphalist NATO. It’s not just nostalgia – there is distrust of the West, too, given its past record of unreliability. There are Russian arms, too, and a strong desire to retain autonomy.

At the other end are those with Western sympathies, what with their wards studying/working in the West. This binary has not been easy to deal with when Indian opinion-makers are almost entirely dependent upon information from the West that also includes war-time propaganda, an inevitable part of the psy-war. Unknown to the news consumer, there is a total blackout of the Russian side of the story. But even an allusion to it is vehemently countered.  

The binary may weaken given the way India is moving politically, and make way for a US-led liberal international order. While common strategic interests bind ties between states, cultivating general interest around advancing democracy, protecting universal values, and international norms, these principles require popular support.

India’s foreign policy activism under Nehru was ethical, at times criticized as moralistic. But it jelled with the Indian psyche. Nehru moved beyond his beliefs and worldviews and garnered domestic support for commitment to the rule of law and international peace and security.

In the present, radically changed times, can Modi do what Nehru did, and better?

The writer can be reached at mahendraved07@fgmail.com

Indo-Russia Oil Trade: What Is At Stake?

In order to shield the economy from the negative impact of the recent surge in crude oil prices, India is exploring the possibility of importing additional oil at discounted rates from Russia, which is facing sanctions and global backlash due to the Ukraine conflict.

According to commodities data and analytics firm Kpler, India’s import of crude oil from Russia in March this year so far is nearly four times higher when compared with the corresponding period of last year. India’s import of crude oil from Russia stood at around an average of nearly 360,000 barrels a day in the first half of this month. As per the current shipment schedules, the average oil trade between the two countries is estimated to be around 203,000 barrels per day.

“Already committed oil cargoes from Russia that can’t find buyers in Europe are being bought by India,” Financial Times quoted Alex Booth, head of research at Kpler, as saying.

“Exports to India surged in March before any official announcement by New Delhi,” Booth said.

There is no government-to-government (G2G) arrangement for oil trade between India and Russia. The majority of the crude oil purchase from Russia for India has been done by Indian Oil Corporation.

Although the United States has acknowledged that crude oil purchases by India would not violate US sanctions, it has warned that it would put India on the wrong side of history.

The US has been putting increasing pressure on India to distance itself from Russia.

White House Press Secretary Jen Psaki said on Friday in Washington that the United States is in touch with the Indian leaders at various levels over the issue of India’s decision to buy oil from Russia at discounted rates.

“We will project and convey to any leader around the world is that the rest of the world is watching, where you are going to stand, as it relates to this conflict, (and) whether it is support for Russia, in any form as they are illegally invading Ukraine,” Psaki said.

India has so far adopted a neutral approach in the Russia-Ukraine conflict. It is among the few countries that have not condemned Russia’s invasion of Ukraine. India also abstained from voting on a US-sponsored UN Security Council resolution deploring Russia’s aggression against Ukraine.

India’s decision to increase crude oil trade and economic engagements with Russia would have huge diplomatic and economic ramifications.

It is important to note that India is heavily dependent on imports to meet its oil requirements. Nearly 85 per cent of the country’s average daily crude oil requirement of around 5 million barrels is met through imports.

The rise in crude oil prices put huge pressure on the Indian economy. High crude oil prices pose inflationary, fiscal, and external sector risks. India’s budget calculations for the financial year 2022-23 have been made with an assumption of crude oil price of $70 to $75 per barrel.

Crude oil prices have surged due to the Russia-Ukraine conflict. It soared to near $140 a barrel earlier this month.

Being a major importer India has to keep exploring competitive prices. A heavy discount offered by Russia is an opportunity. It is extremely important from the perspective of the Indian economy.

Commenting on the India-Russia oil trade, spokesperson for the Ministry of External Affairs Arindam Bagchi said being a major importer of oil India looks at all options at all points of time. “India does import most of its oil requirements, it’s met by imports. So we are always exploring all possibilities in global energy markets because of this situation that we face importing our oil requirements,” Bagchi said.

Russia is the second-largest exporter of crude oil behind Saudi Arabia. Nearly three-fourth of Russia’s crude oil exports go to OECD member countries. Major European countries like Germany, France and Italy, who are also members of the North Atlantic Treaty Organization (NATO), are heavily dependent on the Russian oil supply. If the NATO member countries continue to import Russian oil due to economic reasons, India must also give primacy to the economic interest.

One major challenge in the India-Russia oil trade is the payment system. According to sources, the two countries have been exploring the possibility of setting up a rupee-rouble trade mechanism for paying for oil and other goods.

Apart from the payment mechanism, there are several other issues that need to be worked out. It includes insurance and freight. In the time of military conflict, the insurance cost goes up substantially. India’s import of oil from Russia has traditionally been low due to high freight costs.

Union Minister for Petroleum and Natural Gas Hardeep Singh Puri said in the Rajya Sabha recently that the Indian government was evaluating the Russian offer of crude oil import at discounted rates.

“Discussions are currently underway. Several issues are required to be gone into, like how much oil is available either in Russia or in new markets or with new suppliers that may be coming into the market. Also, there are issues relating to insurance, freight, and a host of other issues, including the payment arrangements,” the minister had said.

Russia has been among the closest and most reliable allies of India. It is by far its biggest arms supplier to India. According to data available with the Ministry of External Affairs, Russian Investments in India stand at $18 billion while the Indian investments in Russia stand at $13 billion. The trade balance is in favour of Russia. India’s imports from Russia stood at $7.75 billion while India’s exports to Russia stood at $3.22 billion in 2018.

Despite the threats of US sanctions, Prime Minister Narendra Modi government in 2018 entered into a $5.43 billion deal with Russia to buy S-400 defence system. The delivery of the missile system began in 2021.

However, India needs to make a cautious move. The United States and other western allies are also crucially important. (ANI)