India and the Russia-Ukraine War: The Paradox of Military Dependence, Traditional Loyalty and Strategic Autonomy

[from India in Transition, published by the Center for the Advanced Study of India (CASI) of the University of Pennsylvania, by Arndt Michael]

India, long-established as the world’s most populous democracy, has been quite instrumental over the years in assisting various countries dealing with democratic struggles. This support has included a blend of bilateral and multilateral initiatives, and especially economic development projects. Yet, India’s recent attitude toward the Russian attack on Ukraine and its concomitant behavior in the United Nations Security Council (as a non-permanent member) seems to contradict its support of democracy. By abstaining, rather than explicitly voting in favor of UN resolutions condemning Russian aggression at the beginning of the war, India angered several UN member-countries.

In order to substantiate its abstention from voting, India felt compelled to issue a so-called “Explanation of Vote” (EoV). In it, India asked for a “return to the path of diplomacy” and an immediate cessation of “violence and hostilities.” Crucially, India stated in the EoV that “the contemporary global order has been built on the UN Charter, international law, and respect for the sovereignty and territorial integrity of states…all member states need to honor these principles in finding a constructive way forward. Dialogue is the only answer to settling differences and disputes, however daunting that may appear at this moment.” 

While these statements and the call for dialogue are in accordance with India’s professed stance toward the relevance and objectives enshrined in the UN Charter, the discrepancy between rhetoric and practice is still conspicuous. At first glance, a “good” relationship with Russia seems to be more significant than the expectations of the world-community as represented in the United Nations. And, more importantly, by abstaining, India seemingly violated one of its central foreign and strategic policies: to always strive for strategic autonomy.

However, from a strategic perspective, India is precisely replicating what it did when the Soviet Union invaded Afghanistan. For India, its own national security is at stake, as well as its current and future geostrategic influence in Asia and the world. The military dependence that currently exists between India and Russia is nothing short of gigantic and has created a dangerous conundrum. Since the “Indo–Soviet Treaty of Peace, Friendship and Cooperation” was signed in 1971, defense agreements and long-term supply contracts have been in place. And while India and Russia have shared a strategic relationship since October 2000, this was upgraded in December 2020 to a “Special and Privileged Strategic Partnership.” 

Although there was a marked reduction of Russian imports in past years, official data from the Stockholm International Peace Research Institute (SIPRI) reveal that between 1996-2015, the Russian proportion of Indian military imports was almost 70 percent, and between 2016-20 it still hovered around 49 percent. In fact, 70 percent of all Indian military equipment currently in use has been directly produced in Russia, was manufactured with the majority of parts coming from Russia, or licensed by Russia. In 2020, this included the majority of Indian tanks, the only aircraft carrier (the INS Vikramaditya, a heavily modified Kiev-class aircraft carrier) with all of its combat aircraft MiG-29s, six frigates, four destroyers and the only nuclear-powered submarine. Additionally, eight out of fourteen Indian Navy submarines belong to the Russian Kilo-class. The Indian Air Force flies Sukhoi Su-30MKIs and Mil Mi-17s, which, respectively, constitute the largest share of the combat aircraft and utility helicopters, in addition to Russian tanker planes. India also just recently purchased the S-400 missile system.

Even though India has begun to reorient itself militarily toward other countries—the U.S., Israel, France and Italy—and has substituted foreign imports by slowly developing its own capabilities, a large number of new Indo-Russian projects are in the conceptual or implementation stages. In December 2021, in the frame of the so-called “2+2 Dialogue” (foreign and defense ministers), India and Russia began a new phase in their militarytechnological cooperation. Incidentally, India has used this very format for furthering cooperation in strategic, security and intelligence issues with four of its key strategic partners: Australia, the U.S., Japan and the newly added Russia. Russia and India agreed upon a further deepening of mutual military relations for ten years (until 2031). What is new is that next to the traditional purchase of Russian weapons systems, many common research projects and the development of new weapons systems—with their production taking place equally in both countries—have been agreed upon. This production includes new frigates, helicopters, submarines, cruise missiles and even Kalashnikovs

The depth of this mutual engagement, and especially India’s dependence, highlights a huge dilemma that might not only have drastic strategic consequences, but also long-lasting regional repercussions. The worldwide sanctions issued against Russia aim at the Russian economy and military. When it comes to the procurement of such crucial components as microchips or airline parts, Russia is soon expected to face shortages, essentially crippling its capacity to repair, construct, or have spare parts available (let alone construct new equipment). Unless other countries, such as China, circumvent international sanctions and step-in, the expected Russian inability to take care of its own military will have a spill-over effect. Russia is unlikely to be able to fulfill its contractual obligations toward India, and the lack of spare parts also has the potential to cripple India’s own military with regards to the Russian weapons equipment. The procurement agreements and common projects are, hence, all in jeopardy and India, now more than ever, depends on Russian goodwill. 

Next to military dependence, there are other concomitant effects in the economic and political sphere that influence Indian voting behavior. The worldwide sanctions have already led to dramatic increases in oil and gas prices, with India relying on imports of up to 80 percent. India will, therefore, have to pay much more for such crucial imports. Military imports from other countries aimed at substituting Russian equipment will also be much more expensive. All of this deals the Indian economy another blow—an economy that has been especially hit hard by the COVID-19 pandemic. And politically, Indian hegemony in South Asia has been markedly under pressure, in no small part because of the ChinaPakistan axis. In the eyes of India, this axis poses a serious threat to an already highly volatile IndoPakistan relationship. In addition, the IndoChina relationship reached a new low in May 2020 when Chinese infrastructure projects along the Himalayan borderlands led to fighting and the killing of soldiers. In addition, the Chinese claims to the South China Sea are categorically disputed by India. Chinese overtures toward Sri Lanka, the Maldives, and especially Pakistan in the frame of the Road Initiative are also regarded with growing discontent, as India claims that China is following a policy of encircling India.

In its 75th year of independence, India is following a classic realpolitik in trying not to alienate Russia while pledging rhetorical support for Ukraine. The contradictory consequence is that Russia has now offered more discounted oil, gas, and investments, while at the same time, the UK has suggested its military relationship with India could be upgraded—and has offered weapons made in the UK. For the Indian political establishment, India cannot forgo Russian support, militarily or as a producer of cheap oil and gas. Going forward, India’s military will need to protect its national security and project Indian influence and power well beyond its borders.

Arndt Michael is a Lecturer in the Department of Political Science, University of Freiburg (Germany), author of the multi-award-winning book India’s Foreign Policy and Regional Multilateralism (Palgrave Macmillan, 2013), and co-editor of Indien Verstehen (Understanding India, Springer, 2016). His articles have been published in Asian Security, Cambridge Review of International Affairs, Harvard Asia Quarterly, India Quarterly and India Review.

Essay 80: Short-Term Energy Outlook

U.S. Energy Information Administration
November 13, 2019 Release

Highlights

Global liquid fuels
  • Brent crude oil spot prices averaged $60 per barrel (b) in October, down $3/b from September and down $21/b from October 2018. EIA forecasts Brent spot prices will average $60/b in 2020, down from a 2019 average of $64/b. EIA forecasts that West Texas Intermediate (WTI) prices will average $5.50/b less than Brent prices in 2020. EIA expects crude oil prices will be lower on average in 2020 than in 2019 because of forecast rising global oil inventories, particularly in the first half of next year.
  • Based on preliminary data and model estimates, EIA estimates that the United States exported 140,000 b/d more total crude oil and petroleum products in September than it imported; total exports exceeded imports by 550,000 b/d in October. If confirmed in survey-collected monthly data, it would be the first time the United States exported more petroleum than it imported since EIA records began in 1949. EIA expects total crude oil and petroleum net exports to average 750,000 b/d in 2020 compared with average net imports of 520,000 b/d in 2019.
  • Distillate fuel inventories (a category that includes home heating oil) in the U.S. East Coast—Petroleum Administration for Defense District (PADD 1)—totaled 36.6 million barrels at the end of October, which was 30% lower than the five-year (2014–18) average for the end of October. The declining inventories largely reflect low U.S. refinery runs during October and low distillate fuel imports to the East Coast. EIA does not forecast regional distillate prices, but low inventories could put upward pressure on East Coast distillate fuel prices, including home heating oil, in the coming weeks.
  • U.S. regular gasoline retail prices averaged $2.63 per gallon (gal) in October, up 3 cents/gal from September and 11 cents/gal higher than forecast in last month’s STEO. Average U.S. regular gasoline retail prices were higher than expected, in large part, because of ongoing issues from refinery outages in California. EIA forecasts that regular gasoline prices on the West Coast (PADD 5), a region that includes California, will fall as the issues begin to resolve. EIA expects that prices in the region will average $3.44/gal in November and $3.12/gal in December. For the U.S. national average, EIA expects regular gasoline retail prices to average $2.65/gal in November and fall to $2.50/gal in December. EIA forecasts that the annual average price in 2020 will be $2.62/gal.
  • Despite low distillate fuel inventories, EIA expects that average household expenditures for home heating oil will decrease this winter. This forecast largely reflects warmer temperatures than last winter for the entire October–March period, and retail heating oil prices are expected to be unchanged compared with last winter. For households that heat with propane, EIA forecasts that expenditures will fall by 15% from last winter because of milder temperatures and lower propane prices.
Natural gas
  • Natural gas storage injections in the United States outpaced the previous five-year (2014–18) average during the 2019 injection season as a result of rising natural gas production. At the beginning of April, when the injection season started, working inventories were 28% lower than the five-year average for the same period. By October 31, U.S. total working gas inventories reached 3,762 billion cubic feet (Bcf), which was 1% higher than the five-year average and 16% higher than a year ago.
  • EIA expects natural gas storage withdrawals to total 1.9 trillion cubic feet (Tcf) between the end of October and the end of March, which is less than the previous five-year average winter withdrawal. A withdrawal of this amount would leave end-of-March inventories at almost 1.9 Tcf, 9% higher than the five-year average.
  • The Henry Hub natural gas spot price averaged $2.33 per million British thermal units (MMBtu) in October, down 23 cents/MMBtu from September. The decline largely reflected strong inventory injections. However, forecast cold temperatures across much of the country caused prices to rise in early November, and EIA forecasts Henry Hub prices to average $2.73/MMBtu for the final two months of 2019. EIA forecasts Henry Hub spot prices to average $2.48/MMBtu in 2020, down 13 cents/MMBtu from the 2019 average. Lower forecast prices in 2020 reflect a decline in U.S. natural gas demand and slowing U.S. natural gas export growth, allowing inventories to remain higher than the five-year average during the year even as natural gas production growth is forecast to slow. 
  • EIA forecasts that annual U.S. dry natural gas production will average 92.1 billion cubic feet per day (Bcf/d) in 2019, up 10% from 2018. EIA expects that natural gas production will grow much less in 2020 because of the lag between changes in price and changes in future drilling activity, with low prices in the third quarter of 2019 reducing natural gas-directed drilling in the first half of 2020. EIA forecasts natural gas production in 2020 will average 94.9 Bcf/d.
  • EIA expects U.S. liquefied natural gas (LNG) exports to average 4.7 Bcf/d in 2019 and 6.4 Bcf/d in 2020 as three new liquefaction projects come online. In 2019, three new liquefaction facilities—Cameron LNG, Freeport LNG, and Elba Island LNG—commissioned their first trains. Natural gas deliveries to LNG projects set a new record in July, averaging 6.0 Bcf/d, and increased further to 6.6 Bcf/d in October, when new trains at Cameron and Freeport began ramping up. Cameron LNG exported its first cargo in May, Corpus Christi LNG’s newly commissioned Train 2 in July, and Freeport in September. Elba Island plans to ship its first export cargo by the end of this year. In 2020, Cameron, Freeport, and Elba Island expect to place their remaining trains in service, bringing the total U.S. LNG export capacity to 8.9 Bcf/d by the end of the year.
Electricity, coal, renewables, and emissions
  • EIA expects the share of U.S. total utility-scale electricity generation from natural gas-fired power plants will rise from 34% in 2018 to 37% in 2019 and to 38% in 2020. EIA forecasts the share of U.S. electric generation from coal to average 25% in 2019 and 22% in 2020, down from 28% in 2018. EIA’s forecast nuclear share of U.S. generation remains at about 20% in 2019 and in 2020. Hydropower averages a 7% share of total U.S. generation in the forecast for 2019 and 2020, down from almost 8% in 2018. Wind, solar, and other non-hydropower renewables provided 9% of U.S. total utility-scale generation in 2018. EIA expects they will provide 10% in 2019 and 12% in 2020.
  • EIA expects total U.S. coal production in 2019 to total 698 million short tons (MMst), an 8% decrease from the 2018 level of 756 MMst. The decline reflects lower demand for coal in the U.S. electric power sector and reduced competitiveness of U.S. exports in the global market. EIA expects U.S. steam coal exports to face increasing competition from Eastern European sources, and that Russia will fill a growing share of steam coal trade, causing U.S. coal exports to fall in 2020. EIA forecasts that coal production in 2020 will total 607 MMst.
  • EIA expects U.S. electric power sector generation from renewables other than hydropower—principally wind and solar—to grow from 408 billion kilowatt-hours (kWh) in 2019 to 466 billion kWh in 2020. In EIA’s forecast, Texas accounts for 19% of the U.S. non-hydropower renewables generation in 2019 and 22% in 2020. California’s forecast share of non-hydropower renewables generation falls from 15% in 2019 to 14% in 2020. EIA expects that the Midwest and Central power regions will see shares in the 16% to 18% range for 2019 and 2020.
  • EIA forecasts that, after rising by 2.7% in 2018, U.S. energy-related carbon dioxide (CO2) emissions will decline by 1.7% in 2019 and by 2.0% in 2020, partially as a result of lower forecast energy consumption. In 2019, EIA forecasts less demand for space cooling because of cooler summer months; an expected 5% decline in cooling degree days from 2018, when it was significantly higher than the previous 10-year (2008–17) average. In addition, EIA also expects U.S. CO2 emissions in 2019 to decline because the forecast share of electricity generated from natural gas and renewables will increase, and the share generated from coal, which is a more carbon-intensive energy source, will decrease.