Explained: Why the US Isn’t Considering Sanctions Against India

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Mayur Joshi
Mayur Joshihttp://www.mayurjoshi.com
Mayur Joshi is a contributing editor to Regtechtimes, he is recognized for his insightful reporting and analysis on financial crimes, particularly in the realms of espionage and sanctions. Mayur's expertise extends globally, with a notable focus on the sanctions imposed by OFAC, as well as those from the US, UK, and Australia. He is also regular contributor on Geopolitical subjects and have been writing about China. He has authored seven books on financial crimes and compliance, solidifying his reputation as a thought leader in the industry. One of his significant contributions is designing India's first certification program in Anti-Money Laundering, highlighting his commitment to enhancing AML practices. His book on global sanctions further underscores his deep knowledge and influence in the field of regtech.

Department of Justice is busy issuing the orders of Sanctions. After the Iran attacked Israel, the US is considering further sanctions on Iran.

In the wake of these developments, the United States was questioned about its stance on India and why it hasn’t contemplated imposing sanctions amid reports of incidents in Canada and Pakistan.

Discussions with Matthew Miller

Matthew Miller, a spokesperson for the US State Department, shed light on the matter, providing insights into the US perspective.

Miller addressed inquiries regarding the possibility of sanctions against India, particularly concerning events such as the alleged murder plot of Khalistani terrorist Gurpatwant Singh Pannun in New York, the killing of Hardeep Singh Nijjar in Canada, and reported incidents in Pakistan. He emphasized that the US prefers not to interfere in India’s relations with Pakistan and refrains from openly discussing sanctions.

When pressed further about statements made by Indian Prime Minister Narendra Modi and Defence Minister Rajnath Singh regarding actions across borders to combat terrorism in Pakistan, Miller reiterated the US stance on encouraging diplomatic resolutions between India and Pakistan. Despite questions regarding the implications of these statements on alleged incidents, Miller reiterated the US’s neutrality, urging both countries to seek dialogue and avoid escalation.

Rajnath Singh’s recent remarks, responding to reports of Indian intelligence agencies conducting targeted killings of terrorists in Pakistan after the Pulwama terror attack, reaffirmed India’s commitment to peace while asserting its right to respond to threats. Singh underscored India’s defensive posture, emphasizing that India has never initiated hostilities against its neighbours but is prepared to respond if provoked.

India’s Encounter with Sanctions Evasion

In the past few months, India has increased its offtake of Russian Oil. It was purchasing the Iran oil. These two are the sanctioned countries.

India’s Strategic Dance: Navigating Sanctions and Energy Needs

India’s recent foreign policy and trade decisions have sparked global interest, particularly in its engagements with nations facing international sanctions. The country’s notable increase in Russian oil imports, historical dealings with Iranian oil, and alleged procurement of warships from Iran amid the Ukraine crisis have raised questions about India’s strategic choices in the global geopolitical landscape.

Ramping Up Russian Oil Imports

India’s longstanding relationship with Russia has influenced its response to the sanctions imposed on Russia post the Ukraine invasion. Despite international pressure, India has significantly boosted its imports of Russian oil. Reports indicate that in 2022 alone, India’s Russian oil imports surged tenfold, making Russia one of India’s top oil suppliers. This move has not only provided India with economic benefits but also saved billions due to discounted rates offered by Russia.

Resuming Iranian Oil Imports

India has been a major importer of Iranian oil, although this trade was curtailed by US sanctions on Iran. With evolving geopolitics and a need for diverse energy sources, there have been discussions about resuming oil imports from Iran. Recent tensions in West Asia have, however, delayed these plans. Despite this, India’s openness to engaging with Iran highlights its pursuit of strategic autonomy in energy policy.

Alleged Purchase of Russian Warships

Claims of India purchasing warships from Russia during the Ukraine crisis have surfaced, but details remain unclear.
Additionally, reports are suggesting Indian warships were deployed in the Arabian Sea in response to regional tensions, specifics about their origins or direct purchases from Iran are not verified. India’s strategic silence on defence matters adds complexity to the situation.
India’s actions reflect its delicate balance between adhering to international norms and safeguarding its national interests. By engaging with sanctioned nations like Russia and Iran, India aims to prioritize economic and strategic benefits over aligning with Western-led sanctions. However, this approach has raised concerns, with warnings from countries like the United States about the potential consequences of bypassing sanctions.
India’s encounter with sanctions evasion underscores its pragmatic foreign policy stance. Through increased Russian oil imports and the potential resumption of Iranian oil imports, India seeks to secure its energy needs while navigating international sanctions. While the alleged purchase of warships adds complexity, India’s actions will continue to be closely observed as the global geopolitical landscape evolves.

In essence, the US position reflects a commitment to diplomatic solutions and non-interference in bilateral disputes between India and Pakistan. While acknowledging the gravity of the reported incidents, the emphasis remains on dialogue and de-escalation to foster regional stability and cooperation.

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