As tensions remain high over the India-US trade conflict and oil imports from Russia, Prime Minister Narendra Modi has decided to address it virtually instead of attending the ASEAN-India Summit in Malaysia in person. Malaysian Prime Minister Anwar Ibrahim informed through a Facebook post that Modi has told him over the phone that he will connect online due to Diwali festival. Anwar has respected this decision and wished him all the best.
Let us tell you that this is the same time when US President Donald Trump is continuously claiming that India will cut the crude oil purchased from Russia. India has not yet formally confirmed this claim, while the US administration has recently imposed stringent sanctions on Russia’s two major oil companies, Rosneft and Lukoil. Senior officials associated with the Indian refining sector have also admitted that after these sanctions it will become almost impossible to import oil from Russia.
It is noteworthy that the Trump government has imposed a tariff of up to 50% on Indian exports, which has been described as a ‘punishment’ for buying oil from Russia. Because of this, tension in India-America relations has increased in the last months. However, officials of both the countries are negotiating a permanent trade agreement on equal terms and the US side has indicated that tariff relief may be given if India cooperates on oil imports.
Meanwhile, no official response was given by the PMO and the Ministry of External Affairs as to why Modi’s visit to Kuala Lumpur was postponed. According to Indian media reports, this time the country will be represented by Foreign Minister S. Jaishankar can do it. All this is happening at a time when there is an emphasis on strengthening India’s role strategically in ASEAN, and the US wants India’s active participation to balance China in the Asia-Pacific region.
Overall, the indications at present are that Modi’s virtual engagement is not just a matter of ‘scheduling or Diwali’ but can also be considered a part of an effort to strike a strategic balance in a delicate era of global diplomacy, because India is in a position to simultaneously balance the equations of America, Russia and ASEAN. This is why the Prime Minister’s Office has chosen to maintain diplomatic distance before its formal presence. It will be important to see what India’s official position is on the oil import and tariff issue in the coming days, as both the global energy market and Indo-Pacific diplomacy are keeping a close eye on this decision.