US, China in competitive mode, India and others must de-risk, diversify for own good: Jaishankar, Pg1

Key Highlights:

• External Affairs Minister S Jaishankar stated that the US and China are in a "competitive mode," prompting India and other nations to "de-risk" and "diversify" their interests.
• A new US law, the Lindsey O Graham Sanctioning Russia and Iran Act of 2026, empowers the US President to levy tariffs on countries buying Russian oil and gas.
• India is highly dependent on imported crude oil, meeting over 88% of its requirements through imports, with Russia supplying nearly half of these.
• Principal Secretary-2 to PM Narendra Modi, Shaktikanta Das, emphasized India's need to reduce energy import dependence, highlighting the Samudra Manthan scheme for hydrocarbon exploration.

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Detailed Insights:

• Jaishankar's remarks were made at the Asia Society Policy Institute in New York, following his participation in the UN General Assembly session.
• The US-China competitive dynamic necessitates other countries to secure their own interests by reducing reliance on single sources or partners.
• The Lindsey O Graham Sanctioning Russia and Iran Act of 2026 poses a challenge for India due to its significant imports of Russian oil.
• The Busan Agreement between the US and China has been extended until January 10, 2027, further shaping the geopolitical landscape.
• India's crude oil basket price reached $120.8 per barrel, leading to daily losses exceeding Rs 500 crore for public sector oil marketing companies.
• US Secretary of State Marco Rubio offered US assistance to regional partners for addressing their energy security challenges.
• Samudra Manthan is a national offshore exploration scheme designed to boost domestic hydrocarbon production and reduce India's import dependency.

Key Concepts Involved:

• De-risk: To reduce exposure to potential financial, political, or supply chain risks.
• Diversify: To spread investments, trade partners, or energy sources to minimize reliance on one.
• Global South: A term referring to countries in Asia, Africa, and Latin America, often developing nations.
• Energy Security: The reliable and affordable supply of energy to meet a nation's needs.