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US presses for Russia curbs, India holds ground on payment systems

International Desk

  02 Apr 2022, 14:49
Photo: Collected

On Thursday, the US pushed India hard on Russia sanctions and alternative payment mechanism for transactions with Moscow but New Delhi stood firm on its strategic autonomy including its conduct of foreign policy. The US criticism came as Russian foreign minister Sergey Lavrov landed here for a meeting with PM Narendra Modi and his Indian counterpart S Jaishankar.

The strong message from the US was delivered both in Washington and New Delhi. "Now is the time to stand on the right side of history, and to stand with the US and dozens of other countries, standing up for freedom, democracy and sovereignty with the Ukrainian people, and not funding and fueling and aiding President Putin's war," US Commerce Secretary Gina Raimondo told reporters in Washington on Wednesday. She called reports of the India-Russia transaction arrangement "deeply disappointing," while adding that she hadn't seen the details.


Dan Tehan, Australia's trade minister who also spoke at the briefing, said it was important for democracies to work together "to keep the rules-based approach that we've had since the second world war."

India is weighing a plan to make rupee-ruble-denominated payments using an alternative to SWIFT after the US and European Union cut off seven Russian banks from using the Belgium-based cross-border payment system operator.

On Thursday, India and the US held discussions on economic partnership, including at G20 and Indo-Pacific region, besides American sanctions on Russia and its possible consequences for New Delhi.

ET has learnt that during discussions with visiting Deputy NSA Daleep Singh, India presented its viewpoint on the Rupee-Rouble Trade Mechanism and harped on Russia's presence in several international organisations even as the US attempted to dissuade India from reducing dependence on Russian energy resources and defence items. The current G20 President, Indonesia, has made it clear to the West that it has no plans to drop Russia from the invitee list.

"Foreign Secretary @harshvshringla met US Deputy National Security Advisor for International Economics & G20 Sherpa Daleep Singh. Discussed bilateral economic cooperation & strategic partnership. Look forward to working together on global issues of mutual interest, including in G20," an MEA spokesperson tweeted without any mention of any discussion on Russia and sanctions. Sources indicated to ET it would be unfair to describe that meeting solely focused on Ukraine as the agenda was wide ranging.

Talking to a select group of reporters here on Thursday, Singh said India's energy imports from Russia are not sanctioned but India is encouraged to reduce imports. "Nations will face consequences for bypassing sanctions," he claimed. However, he noted that friends such as the US and India don't set "red lines" and his discussions in New Delhi amounted to an "honest dialogue" about protecting core principles underpinning global peace and security.

Source: economictimes

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