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Business Standard
05-08-2025
- Business
- Business Standard
Garcetti video resurfaces as Trump targets India's Russian oil imports
As US President Donald Trump ramps up pressure on India over its continued imports of Russian crude, a video of former US Ambassador to India Eric Garcetti admitting Washington had encouraged such purchases to stabilise global prices has resurfaced on social media. The now-viral clip, recorded at an event last year when Garcetti was still in office, shows him acknowledging US support for New Delhi's decision. 'They bought Russian oil because we wanted somebody to buy Russian oil at a price cap. That was not a violation or anything. It was actually the design of the policy because, as a commodity, we didn't want the oil prices going up, and they fulfilled that,' Garcetti said. India is currently the largest buyer of seaborne Russian crude, taking advantage of discounted rates since the Ukraine conflict began. Not the first US endorsement of Russia oil purchase This isn't the only remark made by a US official regarding India's crude oil purchasing in recent years. In 2022, then US Treasury Secretary Janet Yellen told Reuters that India could purchase 'as much Russian oil as it wanted' and at any price, provided it avoided using Western services. In February 2024, then-US Assistant Secretary of State Geoffrey Pyatt also credited India with 'playing a key role' in stabilising global energy markets through such purchases amid the ongoing fallout from Russia's war in Ukraine. 'India has played a key role in our effort to stabilise global energy markets in the face of the extraordinary destabilisation caused by Vladimir Putin's brutal invasion of Ukraine and his weaponisation of his oil and gas resources,' Pyatt said. He noted that the G7-led Russian crude oil price cap, implemented in December 2022, had succeeded in cutting Russia's oil revenues by roughly a third while keeping its oil in circulation to avoid further market turmoil. 'There is no daylight between us – the US and India – in terms of our approach to this issue,' Pyatt affirmed. India defends oil purchase The Ministry of External Affairs (MEA), in a strongly worded statement on Monday, defended the policy as a necessity 'compelled by global market situation' and aimed at ensuring 'predictable and affordable energy costs' for Indian consumers. The MEA also pointed out that the US and European Union (EU), both vocal critics, continue to trade extensively with Russia. EU's trade with Moscow in 2024 amounted to €67.5 billion in goods and €17.2 billion in services, including record imports of LNG. The US, the statement noted, still imports Russian uranium, palladium, and fertilisers. Trump tariffs and stalled India-US trade talks Trump, who has imposed a 25 per cent tariff on Indian imports and threatened to raise duties to as much as 100 per cent, has accused India of 'financing' Russia's war in Ukraine and profiting from the resale of crude. His administration has also stalled bilateral trade negotiations, with agriculture and dairy emerging as contentious sectors. India, however, has stated that while it remains open to dialogue, New Delhi will 'take all necessary measures to safeguard its national interests and economic security'.
Straits Times
22-05-2025
- Business
- Straits Times
G7 seeks to cut 'excessive imbalances' in global economy, may impose more Russia sanctions
Deutsche Bundesbank President, Joachim Nagel and German Finance Minister, Lars Klingbeil atttend a press conference during the G7 finance ministers and central bank governors meeting in Banff, Alberta, Canada, May 22, 2025. Jeff McIntosh/Pool via REUTERS Reuters/Pool via REUTERS German Finance Minister, Lars Klingbeil speaks during the G7 finance ministers and central bank governors meeting in Banff, Alberta, Canada, May 22, 2025. Jeff McIntosh/Pool via REUTERS Reuters/Pool via REUTERS G7 seeks to cut 'excessive imbalances' in global economy, may impose more Russia sanctions BANFF, Alberta - Finance ministers and central bank governors from the Group of Seven democracies papered over their differences on Thursday, pledging to address "excessive imbalances" in the global economy and saying they could increase sanctions on Russia. Ahead of the meeting there had been doubt about whether there would be a final communique, given divisions over U.S. tariffs and Washington's reluctance to refer to Russia's war on Ukraine as illegal. But after talks that stretched over three days, participants signed on to a lengthy document. "We found common ground on the most pressing global issues that we face," Canadian Finance Minister Francois-Philippe Champagne told the closing press conference. "I think it sends a very clear signal to the world ... that the G7 is united in purpose and in action." The finance ministers and central bank governors, who met in the Canadian Rocky Mountains, said there was a need for a common understanding of how "non-market policies and practices" undermine international economic security. The document did not name China, but references by the U.S. and other G7 economies to non-market policies and practices often are targeted at China's state subsidies and export-driven economic model. The communique called for an analysis of market concentration and international supply chain resilience. "We agree on the importance of a level playing field and taking a broadly coordinated approach to address the harm caused by those who do not abide by the same rules and lack transparency," it said. European Commission Executive Vice President Valdis Dombrovskis said the G7 ministers discussed proposals for further sanctions on Russia to try to end its war in Ukraine. They included lowering the G7-led $60-per-barrel price cap on Russian oil, given that Russian crude is now selling under that level, he said. The G7 participants condemned what they called Russia's "continued brutal war" against Ukraine and said that if efforts to achieve a ceasefire failed, they would explore all possible options, including "further ramping up sanctions." They also pledged to work together to ensure no countries that financed the Russian war would be eligible to benefit from the reconstruction of Ukraine. "That's a very big statement," said Champagne, calling it a fundamental pillar of the communique. Russia's sovereign assets in G7 jurisdictions would remain immobilized until Moscow ended the war and paid for the damage it has caused to Ukraine, the communique said. It did not mention a price cap. Brent crude currently trades around $64 per barrel. A European official said the United States is "not convinced" about lowering the Russian oil price cap. A U.S. Treasury official did not immediately respond to a request for comment. Champagne said the meeting discussed the tariffs that the United States has imposed on major trading partners but did not give details of the discussions. The U.S. Treasury said earlier this week that Secretary Scott Bessent intended to press G7 allies to focus on rebalancing the global economy to protect workers and companies from China's "unfair practices." The Chinese embassy in Ottawa said it could not immediately comment. The communique also recognized an increase in low-value international "de minimis" package shipments that can overwhelm customs and tax collection systems and be used for smuggling drugs and other illicit goods. The duty-free de minimis exemption for packages valued below $800 has been exploited by Chinese e-commerce companies including Shein and Temu. REUTERS Join ST's Telegram channel and get the latest breaking news delivered to you.
Yahoo
09-04-2025
- Business
- Yahoo
EU to transfer €2.1bn from frozen Russian assets to Ukraine
The European Union will soon receive the second transfer of funds generated from the proceeds of frozen Russian assets, which will then be paid to Ukraine. Source: European Commission, as reported by European Pravda Details: This week, the EU requested €2.1 billion in windfall revenues from frozen assets of the Russian Central Bank held in central securities depositories. This will mark the second such transfer, following the initial tranche disbursed in July 2024. It covers income accumulated during the second half of 2024. These funds originate from the Russian Central Bank's assets frozen due to EU sanctions imposed in response to Russia's ongoing war of aggression against Ukraine. Although the assets themselves remain frozen, the revenues they generate are being used to support Ukraine. The proceeds from this tranche will be channelled through the European Peace Facility, as agreed by the EU Council in 2024, and the Ukraine Fund to strengthen Ukraine's defence capabilities and contribute to the country's recovery and reconstruction. This measure is part of the EU's unwavering commitment to support Ukraine for as long as needed. Future tranches will primarily be allocated to ensure Ukraine can repay funds received under the G7-led Extraordinary Revenue Acceleration for Ukraine (ERA) loans initiative, while a limited portion will continue to be disbursed via the European Peace Facility. Background: On 9 April, the European Union transferred a €1 billion loan tranche to Ukraine as part of the ERA initiative, backed by proceeds from frozen Russian assets. In 2024, the G7 agreed to jointly provide Ukraine with a US$50 billion loan secured by Russian assets. The funds are formally issued as a loan but will be repaid using the revenues from the frozen Russian assets. Support Ukrainska Pravda on Patreon!
Yahoo
20-03-2025
- Business
- Yahoo
EU provides $1 billion in aid to Ukraine backed by frozen Russian assets
The European Commission has disbursed an additional 1 billion euros ($1.1 billion) in Macro-Financial Assistance (MFA) to Ukraine, to be repaid with proceeds from frozen Russian assets, the commission announced on March 20. "With today's payment of 1 billion euros, we are reiterating our steadfast commitment to Ukraine. We are helping the country's economy stay on course and rebuild critical infrastructure damaged by Russian aggression," Commission President Ursula von der Leyen said. Western nations froze around $300 billion in Russian assets after Moscow launched its full-scale invasion of Ukraine in February 2022, with roughly two-thirds held in Europe. The MFA amounts to 18.1 billion euros ($19.6 billion) in total, representing the EU's contribution to a G7-led initiative that collectively aims to provide Ukraine with approximately 45 billion euros ($48.8 billion) in financial support. With this latest payment, the European Commission has disbursed 4 billion euros ($4.3 billion) to Ukraine under the MFA since the start of 2024. In October 2024, the Group of Seven agreed to provide Ukraine with nearly $50 billion in loans backed by the revenue generated from frozen Russian assets. Read also: Extending NATO's Article 5 to Ukraine would test Russia's peace intentions, Meloni says We've been working hard to bring you independent, locally-sourced news from Ukraine. Consider supporting the Kyiv Independent.
Axios
03-03-2025
- Business
- Axios
How Russia's war on Ukraine reshaped the energy world
Russia's invasion of Ukraine upended global petro-flows — maybe forever — but the effects on low-carbon transition are tougher to parse. Why it matters: Monday marks three years since the launch of the attack. Here are some effects within energy circles ... Climate crosscurrents. There was plenty of chatter when the war started that it would speed energy transition in Europe and perhaps beyond. Yes, but: It also put the spotlight on U.S. LNG as shipments to Europe grew, while then-President Biden in 2022 urged U.S. oil producers to boost supply. Driving the news: The Atlantic Council's new global survey of energy experts — from industry, academia, government and more — is mixed on this question. What they found: 38% see the conflict slowing the process toward net zero, 31% see an accelerant, while the remainder see no effect. And just 25% see a major impact in either direction. It's a new map. Europe's efforts to shun Russian oil and pipelined gas have redirected shipments, deepening Kremlin energy ties with China and India. Zoom in: China's oil imports from Russia rose to 2.4 million barrels per day last year, per IEA data. India's increase has been stunning, rising from roughly 100,000 barrels per day in 2021 to roughly 2 million in 2023 and 2024, per IEA. State of play: Europe vastly curbed imports of gas from Russia, once its dominant supplier, thanks to cutting pipelined supply. LNG shipments from its eastern neighbor have risen, but overall Russia now has just a small fraction of its prior 40% share of European gas imports. Real but limited economic pushback on the Kremlin. Russia's "shadow fleet" of tankers has stymied the effects of oil sanctions and the G7-led price cap. The big picture: Volumes have declined slightly, but Russian oil has been an "enduring" presence, said Landon Derentz, senior Atlantic Council energy analyst. The conflict has not deterred a "meaningful portion of Russian oil flows from reaching the market," he said. What we're watching: U.S. talks with Russia over ending the war. U.S. Treasury Secretary Scott Bessent has raised the prospect of tougher oil sanctions to force talks, and easing restrictions as an incentive. Meanwhile, there's chatter about what once sounded far-fetched: resumption of large-scale Russian pipeline gas flows to Europe, which is grappling with high prices, if the war ends.
