Ukraine's Fund Woes: How US, UK Are Using Sanction 'Loopholes' To Buy Russian Oil While Blaming India

(MENAFN- Live Mint) "For almost two years now, Ukraine has been defending itself from the invading Russian forces. The Russia-Ukraine war, which jolted the post-pandemic geopolitical order was closely followed in the beginning, with US-led Western nations drawing a clear line between countries with Russia and Ukraine. India was often accused by Western media of funding Russia's war as New Delhi continued to purchase Russian oil despite heavy sanctions from the United States and other Western countries, as the war lingered on and other significant geopolitical events overshadowed the conflict, the huge promises made by United States-led Western countries started to fade away. Ukraine President Volodymyr Zelenskyy is roaming country after country in search of more funding to take on the Russian forces, but the doors are rapidly shutting impact of the funding crunch is visible on the ground as Ukraine lags behind in war efforts and every day, Russian forces are gaining lost territories what could be called an anti-climax to this whole equation, the Western nations seem to be back at purchasing Russian oil, as the Israel-Hamas war invoked uncertainties in the oil market. The development came as a shock for many countries, especially Ukraine, which is making repeated requests for renewed funding October, the United States received 36,800 barrels of Russian oil, valued at $2.7 million, and in November, 9,900 barrels were imported, totalling $749,500. These imports were facilitated through the issuance of specific licences by the Office of Foreign Assets Control (OFAC) within the US Department of Treasury, responsible for enforcing sanctions exploits loophole to buy Russian oilAs per a BBC report, the United Kingdom is also purchasing Russian oil through Asian countries like India and China, which are supplying refined oil sourced through Russia. Although it is not against sanctions to import refined oil from India, the experts point out that it undermines the intention of the sanctions UK is exploiting the“rules of origin” loophole to find a way around the sanctions as the rules claim that the oil refined in one country will be classed as originating from that country for the purpose of trade.“Self-interest is key to any nation-state. For a country, no trading partner is permanent, especially when there is an upheaval in the international system due to wars. What Britain did was to exercise its Rational Choice,” said Dr Martand Jha, Doctoral Fellow at Russian and Central Asian Studies, School of International Studies, Jawaharlal Nehru University struggles for fundingThe crucial development comes as the United States and Europe are struggling to continue funding for Ukraine. President Joe Biden is up for election this year, and America's support of the Russia-Ukraine war seems to be a polarising issue on which Republicans are targeting the administration support to Israel for its war in Gaza has also forced the United States to tighten the purse strings and stay relevant in the narrative game the same time, the European Union is facing a 'Hungary' sized roadblock in its funding to Ukraine. Prime Minister Viktor Orban is known for his close association with Russian President Vladimir Putin and is blocking the bloc's efforts at helping the war-torn Ukraine.

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