Russia’s big threat to India! Avoid being included in the FATF list or we will terminate the relationship

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Russia, isolated from the world due to its war with Ukraine, is pressuring India to cooperate in the FATF (Financial Action Task Force). According to the report, Russia has said that it will end defense and energy deals with India if India does not stop Russia from being included in FATF’s ‘black list’ or ‘grey list’.

What is FATF?

FATF (Financial Action Task Force) is an international organization that tries to prevent international economic crimes. A country on FATF’s black or gray list is subject to increased monitoring and financial aid suspension. According to a report, behind the scenes, Russia is pushing many countries of the Global South, including India, to be saved from the FATF list. It is being said that the Financial Action Task Force may blacklist or gray list Russia in June because of the war with Ukraine. The report said that Russia is threatening to cut defense and energy deals with India to protect itself from economic isolation.

FATF revoked Russia’s membership in February 2023

FATF revoked Russia’s membership in February 2023. While suspending Russia’s membership, the FATF said that Russia’s ongoing military operations in Ukraine are against FATF’s fundamental principles. The FATF also said Russia’s ongoing actions in Ukraine were provocative. The FATF has been insisting on blacklisting or graylisting Russia ever since its membership was revoked.

Russia has warned

According to reports, a Russian state agency earlier this month warned its Indian counterpart of dire consequences in the energy, defense and transport sectors if the FATF blacklists or grays Russia. “This is a very serious and sensitive issue,” said a Russian official on condition of anonymity. This is a kind of warning from Russia about unexpected and negative consequences. The Russian agency has urged India to oppose FATF’s move, calling it political and illegal. He has said that if Russia is also kept in the gray list, it will create trouble for India. However, it is not yet clear whether India has responded to these warnings. Apart from this, there is no official statement from Russia or India yet.

What will be the effect on India?

Many Western countries, including the US, have already imposed several sanctions on Russia due to the Ukraine war. Russia currently has the most sanctions. After this, Russia has tried to improve relations with countries like China, India and Taiwan in order to maintain its economy. If the FATF blacklists Russia, it will be extremely difficult for these countries to continue doing business with Russia as well. Due to which the Russian economy may collapse. An official familiar with the matter said that Russia has warned that if Russia is included in the ‘grey list’, it will become difficult for Russia to meet its commitments on arms supply to India and other projects. The official said on condition of anonymity that since the beginning of the war, Russia has appealed to India for help at the FATF meeting. Earlier in May too, Russia had said that India is a credible member of FATF.