INDIA- GERMANY  AGREEMENTS

1. Context

Bilateral issues discussion between India and Germany in the wake of the visit of German Minister of Foreign Affairs Annalena Baerbock.

2. Oil Price Cap

• G7 is working to set a price cap on Russian oil. 
•  The G7 decided to put such a price cap on Russian oil to limit its oil revenues.
• These seven nations include Canada, France, Germany, Italy, Japan, the United Kingdom, the United States, and the European Union.
• The launch of an “oil price cap” plan by theG­7 and European Union countries intends to withdraw shipping and insurance services to countries that buy Russian oil above the price of$60 a barrel.

3. Purpose of Plan

The price cap is specifically designed to reduce Russia’s revenues and its ability to fund the war in Ukraine and limit the impact on global energy prices, particularly for low and middle-income countries.

4. Russia's Standpoint

 Russia has warned that it will snap oil supplies to any country that joins the price cap plan; it will destabilize global oil markets.

5. What should India Do?

• India should not abide by the plan as it receives oil at a discounted price from Russia.
• India is an energy consumer with 85% of its need dependent on imports.

6. India’s Argument

• Defending the government’s decision to increase the intake of Russian oil since the war in Ukraine.
• India said “India’s consumption of Russian oil is just one-sixth of European consumption and should not be compared unfavourably.
• “In the months following the Ukraine war, European countries have imported more Russian fossil fuel than the next 10 countries combined,”

7. Agreements Signed

• At the end of the talks, India and Germany signed a comprehensive partnership on migration and mobility meant to ease travel for research, study, and work for people in both countries.

8. Baby Ariha Issue

•  The two governments did not appear to make any headway on the contentious issue of 22­month old “Baby Ariha”.
• Ariha Shah was taken into childcare by German authorities in September 2021, alleging that she had been abused at home, a charge her father and mother deny.

9. India And Pakistan Issue

• India had also spoken about the challenge of cross-border terrorism from Pakistan.
• Engaged Pakistan on bilateral issues, but the challenge today is that India cannot have talks while there is terrorism.
• United Nations' role in Jammu and Kashmir, human rights concerns, and in mediating between India and Pakistan, that Germany believes India and Pakistan must resolve their issues bilaterally.

For Prelims & Mains