‘Selective’ sanctions causing energy ‘market distortion’—Jaishankar’s subtle swipe at America – ThePrint

Report on Geopolitical Tensions and Their Impact on Sustainable Development Goals

Executive Summary

An address by India’s External Affairs Minister, S. Jaishankar, at the 20th East Asia Summit highlighted significant challenges to the global framework for achieving the Sustainable Development Goals (SDGs). The minister’s statement focused on the detrimental effects of unilateral sanctions, the selective application of international principles, and resulting market distortions, particularly in the energy sector. These actions directly impede progress on several key SDGs, including those related to energy, economic growth, global partnerships, and inequality.

Impact on Energy Security and Economic Stability (SDG 7 & SDG 8)

The minister’s remarks underscore a direct threat to the principles of SDG 7 (Affordable and Clean Energy) and SDG 8 (Decent Work and Economic Growth). Unilateral sanctions imposed by the US, UK, and EU on major energy producers have created significant market distortions and constricted energy trade.

• Energy Access and Affordability (SDG 7): Sanctions on Russian firms like Rosneft and Lukoil constrain the global energy supply, challenging the goal of ensuring universal access to affordable and reliable energy. India’s energy procurement, which saw imports from Russia reach $56 billion in the 2024-25 financial year, is critical for its developmental needs.
• Economic Growth (SDG 8): The reliability of energy supply is fundamental to sustained economic growth.
  1. Indian refineries, including private and state-run entities, have long-term contracts with sanctioned companies.
  2. Disruptions to these contracts and the threat of secondary sanctions on Indian firms risk undermining industrial activity and economic stability.
  3. US tariffs imposed on exports from New Delhi further challenge India’s economic growth trajectory.

Challenges to Global Governance and International Cooperation (SDG 16 & SDG 17)

The report identifies a weakening of multilateralism, which is foundational to achieving the entire 2030 Agenda. The current geopolitical climate poses a risk to SDG 16 (Peace, Justice and Strong Institutions) and SDG 17 (Partnerships for the Goals).

• Erosion of Strong Institutions (SDG 16): The minister’s criticism of nations “selectively applying” international principles points to an erosion of a rules-based global order. Unilateral actions undermine the effectiveness and accountability of international institutions.
• Strained Global Partnerships (SDG 17): The East Asia Summit is a key forum for regional cooperation. However, unilateral measures by member states create friction and undermine the spirit of partnership essential for addressing global challenges. The pressure on India to reduce energy purchases from a key partner illustrates this strain.

Implications for Global Equality and Supply Chains (SDG 10 & SDG 12)

The economic pressures and supply chain disruptions have broader implications for global equality and sustainable consumption patterns, directly affecting SDG 10 (Reduced Inequalities) and SDG 12 (Responsible Consumption and Production).

• Increased Inequality (SDG 10): Unilateral economic sanctions often disproportionately impact developing nations by limiting their access to essential resources and markets, thereby exacerbating inequalities between countries.
• Supply Chain Disruption (SDG 12): The minister noted “growing concerns about the reliability of supply chains.” This instability hinders the ability of nations to establish sustainable and responsible production patterns, a core target of SDG 12.

Conclusion: A Call for Resilient and Multipolar Solutions

The minister’s statement concludes that the world must adapt to new circumstances and devise resilient solutions in an increasingly multipolar environment. Achieving the Sustainable Development Goals will require a renewed commitment to multilateralism, equitable partnerships, and stable international frameworks that support, rather than hinder, the development aspirations of all nations.

Identified Sustainable Development Goals (SDGs)

SDG 7: Affordable and Clean Energy

• The article’s central theme is the trade of energy, specifically crude oil. The sanctions imposed on major Russian oil companies like Rosneft and Lukoil directly impact the global energy supply chain.
• External Affairs Minister S. Jaishankar’s statement about “unfair unilateral sanctions constraining energy flows” and the “market distortion” they cause highlights a direct threat to the accessibility and affordability of energy for countries like India, which is a major importer.
• The article notes that Moscow became India’s largest source of energy, and this trade, valued at “$56 billion in the 2024–25 financial year,” is now at risk, potentially affecting India’s energy security and the affordability of fuel for its population.

SDG 8: Decent Work and Economic Growth

• The economic measures discussed in the article, such as the “50 per cent tariffs on exports from New Delhi” imposed by the US, are direct barriers to international trade, which is a key driver of economic growth.
• The potential for “secondary sanctions affecting their access to global—especially Western—markets” for Indian firms trading with Russian entities poses a significant threat to their business operations, profitability, and contribution to the national economy.
• These trade restrictions and sanctions can stifle economic activity, reduce export revenues, and negatively impact industries reliant on both imported energy and access to global markets for their products.

SDG 16: Peace, Justice and Strong Institutions

• Jaishankar’s critique of nations “selectively applying” international principles points to a weakness in global governance and the rule of law. This challenges the ideal of having effective, accountable, and transparent institutions at the global level.
• The statement that “what is preached is not necessarily practiced” implies a lack of fairness and justice in the actions of powerful nations, undermining the strength and credibility of international norms and institutions.
• The call for a “multipolar” world suggests a need to reform global governance to be more inclusive and representative, strengthening the participation of developing countries in global decision-making processes.

SDG 17: Partnerships for the Goals

• The article illustrates a breakdown in global partnerships and a move away from multilateralism towards unilateral actions. The imposition of sanctions by the US, UK, and EU without a broader international consensus undermines the spirit of global cooperation.
• Jaishankar’s comments directly challenge the use of unilateral economic measures that disrupt a rules-based, open, and non-discriminatory multilateral trading system, which is a cornerstone of SDG 17.
• The situation described—where one country imposes tariffs and sanctions to influence the trade policies of another—is contrary to the goal of enhancing “global macroeconomic stability, including through policy coordination and policy coherence.”

Specific Targets Identified

Target 7.1: By 2030, ensure universal access to affordable, reliable and modern energy services.

• The article shows how unilateral sanctions are “constraining energy flows” and creating “market distortions.” This directly threatens the reliability and affordability of energy for India, a country that depends heavily on imported crude oil. The disruption of supply from its largest source (Russia) jeopardizes its ability to ensure a stable energy supply for its citizens and industries.

Target 8.a: Increase Aid for Trade support for developing countries…

• The article highlights actions that are the opposite of providing Aid for Trade. The imposition of “50 per cent tariffs on exports from New Delhi” by the US is a punitive measure that restricts, rather than supports, India’s trade capacity and economic integration. This directly contradicts the goal of facilitating trade for developing nations.

Target 16.6: Develop effective, accountable and transparent institutions at all levels.

• The criticism of principles being “applied selectively” directly questions the accountability and transparency of the global powers and institutions enforcing these sanctions. It suggests that the application of international rules is not consistent or fair, thereby weakening the effectiveness of global governance institutions.

Target 17.10: Promote a universal, rules-based, open, non-discriminatory and equitable multilateral trading system…

• The use of “unfair unilateral sanctions” and targeted tariffs as described in the article is a clear departure from a rules-based and non-discriminatory multilateral trading system. These actions represent coercive, unilateral trade policies that undermine the principles promoted by the World Trade Organization and this specific SDG target.

Implied Indicators for Measurement

Value and Volume of Energy Imports

• The article provides specific monetary values, such as “India’s purchase of Russian oil touched $56 billion” and imports growing from “$3.1 billion… to over $50 billion.” These figures serve as direct indicators of the scale of energy trade. A sharp decline in these figures due to sanctions would indicate a negative impact on Target 7.1 (access to reliable energy).

Imposition of Unilateral Tariffs and Sanctions

• The mention of “50 per cent tariffs on exports” and sanctions on “Rosneft and Lukoil” are clear, measurable events. The frequency and scope of such unilateral measures can be used as an indicator to track progress (or regression) away from the goals of Target 17.10 (a rules-based trading system) and Target 8.a (Aid for Trade).

Market Volatility and Price Distortion

• Jaishankar’s reference to “market distortions” is an implied indicator. This could be measured through indicators like oil price volatility, changes in shipping and insurance costs for energy trade, and the price differential between sanctioned and non-sanctioned oil. Such distortions indicate a failure to ensure stable and affordable energy markets (relevant to SDG 7).

Summary of Findings

Source: theprint.in