Showing posts with label Russia Ukraine Conflict. Show all posts
Showing posts with label Russia Ukraine Conflict. Show all posts

Wednesday 1 June 2022

Developed Countries: Collection of Hypocrites

The first impression I got from the news “European Union (EU) leaders agree partial embargo on Russian oil imports” is that the developed countries are nothing but a collection hypocrites. They are supplying tons of lethal arms to Ukraine to fight their proxy war with Russia, but just can’t stop buying oil and gas from the country they term aggressor. 

On top of that they are paying Russia in its currency to keep their factories running. If they (developed countries) were sincere with the people of Ukraine, they should have stopped buying Russian energy products.

According to reports, European Union (EU) leaders on May 30, 2022 agreed to a partial ban on Russian oil imports that temporarily excludes pipeline deliveries, in a diplomatic escalation against Moscow for its invasion of Ukraine in late February this year.

"Tonight, the European Council agreed a sixth package of sanctions. Concretely, it will allow a ban on oil imports from Russia with a temporary exception for imports delivered by pipeline," European Council President Charles Michel said.

He added that 75% of Russian oil imports will be immediately affected, rising to 90% of Russian oil purchases by the end of the year.

The measure will exert "maximum pressure on Russia to end the war", and includes provisions to exclude Russia's largest bank Sberbank from the Swift international payment system and to ban three Russian broadcast providers, Michel said.

The partial oil embargo emerges after weeks of negotiations within the EU bloc and makes a critical concession to Hungary, which has previously opposed a full ban at the alleged cost to its national energy security.

Hungarian Prime Minister Viktor Orban on May 30, 2022 had pushed the EU coalition for further compromises.

"Leaving out the pipeline [from the embargo] is a good approach, but in the case of an accident with the pipeline through Ukraine we have to have the right to get Russian oil from other sources," Orban said.

The partial ban will further diminish Russia's dwindling export outlets. Several European buyers are already shunning Russian crude supplies as a result of self-sanctioning or the financial sanctions already in place. Russian production has already fallen by a sharp 870,000 barrels per day (bpd) from the previous month to 9.13 million bpd in April, Argus estimates.

The announcement of the EU sanctions, combined with easing Covid-19 restrictions in China, helped send Brent crude futures to a fresh two-month high above US$122/barrel in Asian trade. The front-month Ice July Brent contract rose as high as US$122.43 at 9.01:30 GMT, up by 0.8% from the close on May 30, 2022.

 

Sunday 6 March 2022

Russia-Ukraine Conflict and Implications for South Asia

According to South Asia Journal, the current conflict between Russia and Ukraine is creating ripples in the global geopolitics. Though, the western media analysis of it as a likely cause for the world war seems far-fetched, the horrors of the limited war, undoubtedly are visible for all to see.

While the role and actions/inactions of major powers Russia, United States, Europe and NATO as a whole are to be seen and analyzed by many, in their respective ways, it would be interesting to make an assessment of implications that it will have on south Asia.

Two major powers in the region, China and India, have found themselves in an unenviable situation. Both have very close politico-strategic relations with Russia but neither wants to take an open stance against Ukraine either, on account of their proximity with US-led Europe.

It is evident that both have failed to openly support the Russian invasion of Ukraine. They have asked for peace and abstained from three crucial UN meetings on the issue, leaving Russia to resorting the UNSC Veto and fend for itself.

China has significant economic stakes in Ukraine. It is the largest trading partner. Ukraine is one of the major stakeholders of Xi Jinping’s ambitious political masterpiece Belt and Road Initiative (BRI) project. Both Russia and Ukraine are military suppliers to China as well.

In spite of Chinese political relations with Russia with no upper limit, its reactions in the ongoing conflict indicate that it was caught off-guard.

It could not anticipate Putin’s determination and failed to issue relevant advisory to its citizens in time. While Singapore and Taiwan issued guidelines to their limited number of citizens in Ukraine as early mid-February, the Chinese embassy was found clueless about the impending conflict.

Further, China has more of ideological and strategic affinities with Russia rather economic. The bilateral trade between the two at US$ 147 billion is about 2% of Chinese global trade. Its trade and economic stakes with Europe is much more important. Irrespective of the frequent diplomatic and political skirmishes with the United States, China knows very well that it cannot afford to get into a full-throttle political, economic or diplomatic battle with the US and its European allies.

India has almost 20,000 citizens in Ukraine, mostly students studying medicine there. It has major political, strategic, diplomatic and economic relations with Russia and cannot afford to antagonize it.

A major chunk Indian military supplies, including hardware and spares, along with S-400 air defense system too, come from Russia. Though in recent years, its dependence on Russia has reduced considerably, mainly due to import diversification to countries like the US, Israel, France and also due to indigenous ramping up of production and R&D capabilities in defense.

Russia has on all occasions in the last five decades stood by India, politically and diplomatically, including using the crucial veto in the UNSC once on the Kashmir issue.

Similarly, Ukraine has good working relations with India but has voted openly against India on its nuclear tests in 1998, supported the UNSC sanctions and provided a fair amount of military hardware to Pakistan, to be used against India. But of late, relations between the two are on an upswing and India would not like to jeopardize its relations with either.

A comparative cost-benefit analysis of national interests though certainly outweighs any explicit diplomatic hysteria on the lines, demonstrated by the west against Russia currently.

India is currently indulged in a delicate balancing act. It has expressed its concerns against invasion to Russia at the highest levels privately while appreciating their security concerns. It has also conveyed to the US and major European countries of its need to perceived neutrality.

At the same time, it is working in tandem with both Russian and Ukrainian governments, to ensure safety and evacuation of its citizens, at the earliest.

As for the direct and short-term implications, trade and military supplies for both China and India, are certain to be affected. Both are preparing for a significant disruption in their exports to the two warring nations.

For India, the timely supply of remaining S-400 systems are of critical significance given the uncertain state of its current politico-military relationship with China. The middle kingdom on the other hand, must be watching the outcome of this conflict keenly since it could provide it an opportunity to re-orient its possible invasion of Taiwan strategy in due course of time.

A good number Pakistanis stuck in Ukraine are students. Initially confounded and even putting up a statement of financial limitations, its government now is trying to evacuate its citizens.

India claims that many Pakistani and Turkish citizens have been evacuated from the war zone, by identifying themselves as Indian and hoisting Indian flags on their vehicles since India has strongly demanded the two warring sides, to ensure safety of its citizens who neither side wishes to antagonize.

Pakistani Prime Minister Imran Khan visited Russia the day, Putin ordered his troops into Ukraine. For Pakistan this became a very awkward moment since the west became furious with his meeting with the perceived aggressor, Putin at that very moment.

It is also believed that National Bank of Pakistan became the first casualty with the US imposing a penalty of US$ 55 million on it while politically, the country remains at the receiving end of western fury.

Bangladesh with about 3,000 citizens stuck in Ukraine, too has good working relations with both countries. With Ukraine, its economic relations are growing rapidly and it is also helping Bangladesh in developing infrastructure, steel and ports. Similarly, Russia is politically too important to be disowned and criticized by it.

Nepal too has few citizens left in the war zone that have reportedly been evacuated by the Indian authorities and brought back home.

Maldives, the tiny island nation in the Indian Ocean has started feeling the impact of war since a considerable number of its foreign tourists involve both Russian and Ukrainians.

Though the south Asian region remains a bit far off from the battle raging on yet it has certainly affected countries there.

The Russo-Ukraine war has also resulted in delicate diplomatic balancing by countries around the world and China and India, primarily are on the radar.

The United Nations has not been successful in negotiating ceasefire, which raises another big question mark on the utility of the world body. The efficacy of the US-led NATO too raises doubts, both among its members and non-members. However, to prevent widespread destruction and disorder, the early the war is stopped the better that would be for the world and the humanity.