NATO Warns India, China, Brazil Over Russian Oil Purchases
US President Donald Trump has introduced uncertainty in global trade by imposing tariffs, which many view as aggressive tactics. While discussions are underway between India and the US to finalize a bilateral trade agreement, Trump is simultaneously exerting pressure on India. Since the onset of the Russia-Ukraine conflict, India's acquisition of inexpensive oil from Russia has been a concern for the US and its allied nations. Trump had urged India to lessen its reliance on Russian oil, but India resisted the pressure, opting to continue its purchases to safeguard its national interests.
Now NATO has threatened India, China and Brazil that if they continue to buy oil and gas from Russia, then 100 per cent tariff will be imposed on them. NATO Secretary General Mark Rutte said in clear words that if the person sitting in Moscow does not take the advice to stop the war with Ukraine seriously, then strict tariffs will be imposed to isolate him economically. He said that whether you live in Beijing or Delhi or are the President of Brazil, you need to pay special attention to this, because if this happens, you three can be affected the most. Along with this, the NATO Secretary General also appealed to the three countries to make serious efforts to persuade Russian President Vladimir Putin for peace talks.
Earlier, Trump had put pressure on Russia to stop the Ukraine war and said that if no agreement is reached to stop the war even after 50 days, he will impose strict sanctions on Russia. NATO's jump into the ongoing tariff war in the world is like a big challenge. Western countries are led by America and NATO (North Atlantic Treaty Organization) which is mainly the center of military and economic power. It is clear that NATO has given this threat at the behest of Trump. Now the question is whether this threat is the beginning of a new cold war between BRICS countries and Western countries? BRICS, an organization of Brazil, Russia, India, China and South Africa, currently gives a platform to emerging economies. This organization has now become a group of 10 countries and has a 41 percent share in the global economy.
Cold war means tension, competition and economic-military pressure between two countries or groups without direct war. The biggest example of this is the Cold War that ran between the US and the Soviet Union from 1945 to 1991. At that time both sides tried to weaken each other through arms race, espionage and economic sanctions. Today the growing tension between BRICS and Western countries looks similar but it is focused on economic and geopolitical issues. The BRICS group is constantly talking about creating a new BRICS currency to reduce dependence on the US dollar so that the global dominance of the dollar can be challenged. It has also condemned US tariffs and the Israel-Iran war. Due to this, America and NATO have started considering it as their enemy. Western countries had tied Russia in trade sanctions only after the war started in Ukraine.
After which India and China became Russia's biggest oil buyers. In 2023, these two countries imported about 85-90 percent of the crude oil coming from Russia by sea route. India alone buys 1.6 to 1.7 million barrels of crude oil from Russia every day, which is about 35 percent of India's total daily requirement. Russia sells oil to India at a huge discount, so Trump's threat is a direct attack on India's energy strategy. The G-7 countries have already put a cap of $ 60 per barrel on the price of Russian oil. Therefore, India buys Russian oil at a price less than $ 60 per barrel, while in the international market oil is being sold at around $ 70 per barrel. (Price between 66 to 72) In such a situation, it can be understood how much India is benefiting.
A recent report said that Russian oil imports from India reached the highest level in 11 months in June. Trump and NATO's warning is going to create trouble for India. Russia has been our tested friend. India will be with them in every situation. India will also have to be cautious about the way Trump is embracing Pakistan. India will also have to see what effect the new India-US bilateral trade agreement will have on the domestic economy and trade. India has time till August 1 to reach an agreement. There is a deadlock in the agreement on issues like genetically modified crops, dairy products and drug exports. India faces many challenges and the options are limited. Therefore, India will have to move forward with a cautious attitude. India has always adopted a policy of balance. It will maintain deep relations with its friend Russia and at the same time it does not want to go completely against the West. India will once again have to respond to such threats with its independent policies.