Relevance for UPSC: GS II (International Relations), GS III (External Sector); Source: The Indian Express, Reuters

Context

The United States Congress has backed a proposed Russia Sanctions Bill empowering the U.S. administration to impose secondary sanctions, including tariffs up to 500 percent, on countries that continue substantial trade in Russian energy resources. The move aims to pressure Russia over the Ukraine conflict but has wide global spillovers.

Why It Matters for India

  • India imports discounted Russian crude as part of its energy security strategy.
  • Punitive tariffs could threaten Indian exports to the U.S., especially labour-intensive sectors.
  • Raises concerns over strategic autonomy and opposition to unilateral sanctions outside the United Nations framework.
UPSC Value Box

For Prelims

  • Secondary sanctions target third countries, not just the primary sanctioned state.
  • Tariffs proposed may go up to 500 percent.

Key Concept
Secondary sanctions: Penalties imposed on countries or entities engaging with a sanctioned state.

Institution / Framework
United States Congress; principles of strategic autonomy in India’s foreign policy.

Q. With reference to secondary sanctions, consider the following statements:

  1. They may be imposed on third countries trading with a sanctioned state.
  2. They are always authorised by the United Nations Security Council.

Which of the statements given above is/are correct?
(a) 1 only
(b) 2 only
(c) Both 1 and 2
(d) Neither 1 nor 2

Correct Answer: (a)

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