5/13/2023

India between a rock and a hard place


Modi is visiting Biden in June, apparently summoned to hear the emperor's edict. It does not come as a surprise, as the timing is perfect, with Moscow wanting to sell weapons and trade with India and to be paid in Yuan, not rupees. Understand India still has not been able to pay Russia for weapons supplied earlier to the tune of US$8 billion, of which US$2 billion is now stuck with the sanctions against Russia, if I am not mistaken. India is afraid to antagonise the USA by paying Russia in Yuan, which means bypassing the US$. Russia has little use to take more rupee payments in unlimited quantities, as India export much less to Russia than China, which is why Russia wants to be paid in Yuan.
This is, of course, not to the liking of the Indians having to use the Yuan. It means the rupee is not clearly favoured by the Russians. Therefore it is leading to trouble. The USA is quick on the mark to 'make hay while the sun shines'. Yes, another alliance is in the making, and you can be sure India will be coerced to move in with the West to condemn Russia in Ukraine and of course to confront China. Those who have been summoned to Washington to hear the emperor's edict, eventually had been arm twisted and forced to bend backwards, following the pressure exerted. Of course, no one wants to talk about it. Does the changing stance of Marcos Jr give us any clue? Or Olaf Scholz now being obedient like a dog has anything to do with his visit to Washington?

India is stuck between a rock and a hard place. India is too dependent on Russian energy to antagonise the Russians by turning against them over Ukraine. The USA is bent on making that happen. Sure, India can buy its energy needs from the USA, but it will not be cheap and certainly not highly discounted. Even the Middle East will not be able to give the same deal of highly discounted oil to India like the Russians. Moreover, the USA has no leverage over the Middle East to sell cheaper oil to India, as even Europe is paying very expensive prices for Middle East energy. Remember that most Middle East countries are now closing ranks with Russia, and when it comes to the doctine of 'the enemy of my friend is also my enemy', India may be in deep trouble.

Anonymous

4 comments:

Anonymous said...

"India is afraid to antagonise the USA by paying Russia in Yuan, which means bypassing the US$."

Modi has 2 viable options.
a) Biden can make India most favoured nation to pay in Yuan if Modi is generous with his red packet ( angpow ) or b) payment to Russia can be in SGD with a little help from fellow Indians @ DBS and @Temasek. Of course ensuring the red packet to Biden. LOL

Anonymous said...

Would Russia accept S$ from an unfriendly country? How large is trade between Red Dot and Russia I wonder?

Anonymous said...

The push to reclaim the treasures lost back in the day of the British Empire is said to “come from the top” echelons of Indian officials. The campaign is also reportedly on Prime Minister Narendra Modi’s priority list, with one Telegraph source describing the initiative as “reckoning with the past.”
rt.com

Anonymous said...

Bhutan Hopes to End Border Row With China Very Soon; Indians Alarmed

Bhutan is on the verge of resolving the border dispute with neighbouring China, its Foreign Minister Tandi Dorji told a TV channel in Dhaka on Saturday.

“Bhutan and China share a very close and cordial relationship. Our border in the north has not been demarcated. We have had 24 rounds of talks and we continue to have our expert group meeting. We hope that it (the dispute) will be resolved very soon,” he told the channel.

“Last year, we signed the three-step approach to resolve the border (dispute)… So, we hope that this can be taken forward in the upcoming meeting. As far as the border is concerned, there is peace and tranquillity. We hope that the demarcation of the border happens soon,” Dorji added.

“From our side, the Chinese have always been on their side of the territory and we have not seen them getting into the Bhutanese territories,” he said.

Indian troops had a 73-day confrontation with the Chinese troops in 2017 as they felt Beijing was constructing a road in the disputed area of Doklam.

Of China’s 14 land neighbours, 12 have finalised their boundaries. Bhutan and India are the only standouts. Two rounds of recent talks between the Indian and Chinese Foreign Ministers had made no headway on the border dispute. External Affairs Minister S Jaishankar has repeatedly called the ties with China “abnormal”.