In his first international address since the recent mutiny in Russia, President Vladimir Putin reaffirmed Russia’s opposition to Western sanctions during a virtual Shanghai Cooperation Organisation (SCO) summit. The summit, led by India, saw Putin express defiance towards the West, stating that Russia “counters all these external sanctions, pressures, and provocations and continues to develop as never before.” He also highlighted the importance of trade agreements between SCO nations in local currencies, seen as a measure to mitigate the impact of sanctions.

“I would like to thank my colleagues from the SCO countries who expressed support for the actions of the Russian leadership to protect the constitutional order and the life and security of citizens.”

Putin

During the summit, President Putin acknowledged the support of his SCO counterparts in safeguarding the constitutional order and the security of Russian citizens. He emphasized that over 80% of trade between China and Russia is conducted in roubles and yuan, urging other SCO members to adopt the same practice.

Meanwhile, Indian Prime Minister Narendra Modi focused on enhancing trade, connectivity, and technological cooperation among SCO members, without explicitly addressing the war in Ukraine or China’s assertiveness in the Indo-Pacific.

Prime Minister Modi’s diplomatic approach during the summit was influenced by India’s growing ties with the West while maintaining a historically non-aligned stance. He refrained from directly mentioning China, with which India has had tense relations, including a deadly border clash in 2020.

Instead, he called on SCO members to cooperate in combating cross-border terrorism, often seen as a reference to Pakistan. Pakistani Prime Minister Shahbaz Sharif echoed this sentiment, urging SCO nations to address the challenges posed by terrorism, extremism, and separatism.

“Some countries use cross-border terrorism as an instrument in their policies, (they) give shelter to terrorists… SCO should not hesitate to criticise such countries.”

Modi

Chinese President Xi Jinping stressed the importance of regional peace and security, urging SCO members to strengthen solidarity and mutual trust. All SCO members expressed unanimous agreement on the need to maintain stability in Afghanistan following the Taliban’s takeover after the withdrawal of US troops two years ago.

A joint statement to be issued later will provide further insights into how SCO nations plan to collaborate on addressing the situation in Afghanistan.

The SCO, established in 2001 by China, Russia, and four Central Asian countries, aimed to counter Western influence in the region. India and Pakistan joined in 2017. With a combined population of around 40% of the world and contributing over 20% to global GDP, the SCO holds significant potential.

Its inclusion of Iran as a full member would strengthen its energy portfolio but could trigger displeasure in Western capitals. As the SCO increasingly clashes with Western-led forums, India faces the challenge of maintaining diplomatic balance between its global partners.

Analysis

The virtual SCO summit showcased President Putin’s determination to counter Western sanctions and strengthen Russia’s position within the SCO. By promoting trade in local currencies, Russia aims to reduce its dependence on Western financial systems and mitigate the impact of sanctions. Putin’s defiance serves to rally support from fellow SCO members and reinforces the notion of a united front against the West’s perceived encroachment.

Prime Minister Modi’s cautious approach reflects India’s delicate diplomatic position as it seeks to maintain strong ties with both the West and its SCO partners. By focusing on regional security and cooperation against cross-border terrorism, Modi seeks to balance India’s strategic interests while avoiding direct confrontation with China. This approach allows India to play a constructive role within the SCO and maintain its non-aligned foreign policy stance.

China’s President Xi Jinping emphasized the need for solidarity and mutual trust among SCO members, highlighting the importance of maintaining regional peace and security. China’s proactive role within the SCO allows it to consolidate its influence and foster closer ties with neighboring countries. China’s inclusion in the SCO strengthens its position as a regional power and provides a platform to shape the agenda in line with its strategic objectives.

The SCO’s expansion, particularly with the potential inclusion of Iran, significantly increases its global influence. The group’s large population and substantial GDP make it a formidable force on the global stage. However, the SCO’s growing prominence may intensify geopolitical rivalries, particularly with Western-led forums, potentially complicating India’s efforts to balance its relationships with Russia, China, and the West.

It is crucial to closely monitor the SCO’s evolving dynamics and its implications for regional and global politics. The SCO’s success in addressing critical issues such as Afghanistan’s stability and combating terrorism will be instrumental in shaping the organization’s relevance and effectiveness in the coming years.

India’s ability to navigate its diplomatic challenges while preserving its foreign policy independence will be crucial in determining the SCO’s trajectory and India’s role within it.