South Asia and Beyond

‘Western Sanctions Have Not Hit All Russian Entities, Eventually These Will’

NEW DELHI: The economic destabilisation caused by Russia’s decision to invade Ukraine are there to see. From rising fuel and fertilizer prices to the shortage of food grain. Yet, the reverse is also true, argues P S Raghavan, Chairman of the National Security Advisory Board and former ambassador to Russia. In this chat on The Gist, Ambassador Raghavan points to Russian oil finding new markets in Asia, and Europe and the US continuing to buy refined petroleum products derived from discounted Russian crude sold to India. In the process, West Asian oil suppliers have hiked rates as European customers flocked to them. The war has also busted the myth about Russia’s collapse, Raghavan says. If anything, the economy is doing well and the rouble has even strengthened. Of course, sanctions will bite eventually but it’s interesting to see how many Russian banks remain outside the sanctions regime, or how some Russian oligarchs travel the world despite sanctions. India, in his view, has played its cards well, underscoring how it has no quarrels with Russia, Ukraine or Europe and America. But it’s decision not to condemn Russia’s invasion of Ukraine and maintain ties with Moscow is driven by hard calculation of where its interests lie. Tune in for more in this conversation with P S Raghavam, Chairman of the National Security Advisory Board.

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