Challenges For India As Ukraine War Continues And Sanctions On Russia Bite

NEW DELHI: From higher oil prices to a shortage of diamond roughs, the war in Ukraine will hit India in many ways. Oil prices per barrel have already gone through the roof since the invasion, forcing Delhi to release crude from its strategic reserve, says Rajat Kathuria, formerly of ICRIER and currently professor of economics at Shiv Nadar University.

In a chat on The Gist on StratNewsGlobal, Kathuria looks at the challenges ahead as the Ukraine war drags on and Western sanctions bite. Russia’s exports of oil are already under US sanctions while Europe has suspended deliveries of gas under Nord Stream 2. Russia has reportedly offered to sell discounted oil to India but how this will be paid for and how it is delivered is yet to be worked out.

Key Indian exports to Russia such as tea could be hit. On the other hand Indian steel makers are expected to do well given the proscriptions on made in Russia steel.

Tune in for more in this conversation with Rajat Kathuria.