SAMAJ WEEKLY UK
Balram Sampla,
Geopolitics.
The United States government is thinking about punishing India with economic sanctions. This is happening because of Senator Lindsey Graham’s “Sanctioning Russia Act of 2025.” The US is angry because India is buying oil from Russia and not using US dollars to pay for it. This creates problems for American power around the world.
The US Dollar Problem.
The main problem is that India stopped using US dollars to buy Russian oil. Since 2022, India has been paying for oil using Indian rupees and Russian rubles instead. This means they completely avoid the American banking system.
This is a big problem for America because the US dollar is used for most international trade around the world. When countries use dollars, America can control and watch these transactions. If many countries stop using dollars like India did, America loses this power. For American leaders, this is very dangerous because they use dollar control as a political weapon.
Energy Needs
India needs a lot of oil because it is a big country with many people and factories. India also buys oil from other countries. But, Russian oil is much cheaper because of Western sanctions, so India buys a lot of it. Before 2022, India bought almost no Russian oil. Now it buys hundreds of thousands of barrels every day.
India thinks this is smart business – they get cheap oil for their people and economy. India buys oil, refines it and also sells it. But the US thinks India is helping Russia by buying so much oil. The US and Europe want to hurt Russia’s economy by not buying Russian oil. When India buys large amounts of Russian oil, it helps Russia make money and reduces the punishment.
The Copycat Problem
The US is also worried that other countries will copy India. India is the world’s biggest democracy and a growing economic power. Many developing countries in Asia, Africa, and Latin America look up to India. India is leader of the South. When they see India successfully trading without US dollars, they might try to do the same thing.
If many countries start avoiding US dollars, America will lose its ability to punish countries with financial sanctions. This power has been very important for American foreign policy since the Cold War ended. The US uses financial punishment instead of military force to control other countries.
The China-India Double Standard
The most interesting part is that China also buys lots of Russian oil, but the US treats China and India very differently. China is actually the biggest buyer of Russian oil, buying 37% of all Russian oil exports. Russia also supplies 38% of India’s oil needs. Both countries buy similar amounts, but the US is much more angry at India than China.
Why does this happen? The US expects India to be a friend and partner, so India’s actions feel like betrayal. US has more power to hurt India’s economy than China’s economy. China is too big and powerful to punish easily, but India is smaller and more vulnerable.
India completely avoids the dollar system by using rupees and rubles, while China sometimes still uses dollars.
The US knows that a big economic fight with China would hurt America too. It is safer to pressure India than to fight China directly.
The Friendship Problem
This situation shows a big contradiction in US policy. America’s biggest competitor (China) faces less punishment for buying Russian oil than a democratic friend (India). American leaders know India is important for fighting against Chinese power in Asia, but they also want to punish India for not following American rules.
The US does not want to destroy India’s economy or end their friendship. Instead, they want to punish specific Indian companies and create enough economic pain to make India change its behaviour. They also want to send a message to other friendly countries that disobeying America has consequences.
Political Changes Around the World
If a key democratic partner like India can openly oppose important US policies without serious punishment, other allies might decide they can also ignore American demands. From America’s perspective, allowing this behaviour makes America look weak and might encourage other countries to disobey American leadership.
Conclusion
This growing tension is about America’s desire to control global politics and economics, and the reality is that even friendly countries now started to put their own interests first.
Whether the US can successfully pressure India to change its Russia policy without destroying their friendship will be a crucial test of American power in the 21st century. The result will affect not only US-India relations but also how other countries relate to each other in a global village.
References
1. S.1241 – Sanctioning Russia Act of 2025
Sen. Graham, Lindsey [R-SC] (Introduced 04/01/2025)
Section 11 C (1)
www. Congress.gov
2. The turning tides of US sanctions India caught in the middle
https://disputeresolution.cyrilamarchandblogs.com/2023/12/the-turning-tides-of-us-sanctions-india-caught-in-the-middle
