G-7 plan for a price cap on Russian oil unlikely to sell in China and India

Both the nations are reluctant to go with the proposed G-7 price cap on Russian oil. They are highly unlikely to do anything that may hurt Russia's economic interests

Does the recently agreed G-7 plan for a price cap on Russian oil have any appeal over the wider world today? Hardly.

Observers say China and India, the world's two most populous nations, are among the key buyers of Russian oil today. Both the nations are reluctant to go with the proposed G-7 price cap on Russian oil. They are highly unlikely to do anything that may hurt Russia's economic interests.

Chinese President Xi Jinping has always backed his Russian counterpart Vladimir Putin's opposition against NATO expansion. In the wake of the Ukrainian crisis, Beijing refused to condemn President Putin for it. It has taken exception to the US-led Western sanctions against Russia.

The communist leadership in Beijing regards Russia (and China) as menaced by "colour revolution," a Chinese communist euphemism for the West-backed insurrections. It holds President Putin in high esteem. It has produced a documentary which is full of praise for him. The documentary depicts Putin as a real hero and previous Soviet leaders, such as the late Mikhail Gorbachev and Nikita S. Khrushchev, as dupes.

Beijing blames the United States for the present conflict in Ukraine. It asserts that since the demise of the Soviet Union, "some countries in Eastern Europe, Central Asia and Transcaucasia have become forward positions for the West to contain and meddle in Russia."

Economic relations between Russia and China are very strong. Trade accounts for about 46 per cent of Russia's economy. China accounts for much of it. China-Russia trade stood at more than $145 billion in 2021. China holds 14 per cent of Russia's forex reserves. Russia has been Beijing's biggest recipient of loans from official sector institutions.

In February this year, Russia's Gazprom and China's CNPC signed a 25-year deal on a new gas supply route. Rosneft agreed to supply CNPC with 100 million tonnes of oil (via Kazakhstan) over the next ten years.

The successive political dispensations in New Delhi have had very strong ties with their counterparts in Moscow. Russia has been a time-tested friend of India. During the Cold War, the then communist Soviet Union, the official predecessor of Russia, stood by India on the Kashmir issue. In 1962, it remained neutral in India's border dispute with communist China.

Since the Ukraine war-related Western sanctions began on Russia, Moscow has been selling its oil to New Delhi on a highly discounted price. In the process, India's oil intake from Russia has soured 50 times. India may not like to forfeit this chance.

Prime Minister Narendra Modi is all for better ties between India and Russia. Delivering a video address during the plenary session of the 6th Eastern Economic Forum (EEF) held in Vladivostok early this month, he applauded President Putin's vision for the development of the Russian Far East and reiterated India's commitment, as part of its "Act East Policy,' of being a reliable partner of Russia. Prime Minister Modi stressed the importance of greater economic and commercial engagement between India and Russia in line with the 'Special and Privileged Strategic Partnership'.

(Jagdish N. Singh is a senior journalist based in New Delhi. He is also Senior Distinguished Fellow at the Gatestone Institute, New York)

Disclaimer: The opinions expressed in this article are the personal opinions of the author. The facts and opinions appearing in the article do not reflect the views of OneIndia and OneIndia does not assume any responsibility or liability for the same.