At G20 foreign ministers’ meet: Jaishankar raises energy crisis, flags sanctions, attacks

Jaishankar argued that the world’s energy crisis is not mainly a shortage of production. Instead, it comes from unpredictable supplies, disruptions, unaffordable costs, and difficulties accessing energy. This distinction matters because energy can exist in the global system yet remain unavailable or too expensive for consumers and governments.

He pointed to deliberate attacks on energy infrastructure and trade as a calculated strategy to hold prices hostage. He also highlighted repeated distortions caused by obstacles, sanctions, and chokepoints. These pressures can interfere with energy flows and make markets harder to predict.

Jaishankar warned that the effects are spreading more widely and becoming more complex. He said there is little regard for low-income countries, which face the greatest difficulty absorbing higher costs. He urged the G20 to keep energy markets open and predictable, widen access to finance, and support storage, green hydrogen, biofuels, and small modular reactors.

Sanctions are government-imposed restrictions on trade, finance, companies, or countries. They may block purchases, payments, shipping, or access to technology. Energy-market chokepoints are narrow routes, ports, pipelines, terminals, or other points where supplies must pass. A disruption there can affect many buyers at once.

Attacks on energy infrastructure are deliberate strikes against facilities such as pipelines, refineries, storage sites, ports, power systems, or processing plants. Attacks on ships carrying oil and gas can also interrupt deliveries. The article links such attacks to both ongoing wars in West Asia and the Russia-Ukraine conflict.

These tools and events matter because energy markets depend on continuous movement. Sanctions can stop willing buyers and sellers from completing transactions. Chokepoints can delay or block transport. Physical attacks can reduce available capacity. The result may be higher prices, uncertain delivery schedules, and greater pressure on countries that lack alternatives.

India relies heavily on imported energy. Recent widely reported estimates put crude-oil import dependence at roughly 85 percent of consumption and natural-gas import dependence at about 50 percent. India also imports a substantial share of the LPG used in homes, commonly estimated at around 60 percent. These figures can vary by year, product, and measurement method.

The article itself does not provide import percentages. It does state that India needs reliable and predictable LPG supplies for clean cooking. That dependence makes interruptions especially important for households, businesses, and public policy. LPG is not only an industrial fuel; it is central to India’s stated clean-cooking needs.

Import dependence leaves India exposed to international prices, shipping disruptions, sanctions, and supply decisions elsewhere. Jaishankar therefore pressed the G20 to keep markets open and predictable. He also highlighted India’s critical-minerals mission and proposed circularity initiative, alongside storage and other technologies that could strengthen resilience over time.

Oil and gas prices respond not only to how much energy exists, but also to whether it can reach buyers. Sanctions may prevent transactions, insurance, shipping, or payments. Attacks may damage pipelines, ports, processing plants, storage, or vessels. Each disruption reduces the supply that can move through the market.

For example, if an attack interrupts ships carrying oil or gas, importers must seek replacement cargoes or longer routes. If sanctions block a major exporter, buyers may compete for supplies from other producers. This competition can lift prices. Delays and uncertainty can also make traders demand higher costs or avoid risky deliveries.

The impact extends beyond the immediate conflict zone because oil and gas are traded internationally. Jaishankar described today’s crisis as one of unpredictability, disruption, unaffordable costs, and access. He warned that continuing obstacles, sanctions, and chokepoints are becoming more frequent, complex, and wide-reaching, especially hurting low-income countries.

Low-income countries are especially vulnerable because energy is essential for transport, electricity, cooking, farming, and industry. When prices rise suddenly, governments and households with limited budgets have fewer ways to absorb the increase. Higher fuel costs can also raise the price of food and other necessities through transport and production expenses.

The article does not give country-specific examples or quantify these effects. It does show the mechanism: obstacles, sanctions, chokepoints, and attacks make energy supplies less predictable and more expensive. Countries with limited access to finance may struggle to buy replacement cargoes, build reserves, or invest quickly in alternative systems.

Jaishankar said there appears to be little regard for the predicament of low-income countries. He urged the G20 to widen access to finance and keep markets open and predictable. Greater financing, storage, and cleaner energy options could help vulnerable countries manage shocks, though the article does not measure how much relief each option would provide.

Governments can reduce disruption risk by using several options rather than relying on one fuel, route, or supplier. Storage can hold energy for emergencies and smooth temporary interruptions. Green hydrogen and biofuels can provide alternatives for some industrial, transport, or energy uses. Small modular reactors are another technology Jaishankar urged the G20 to advance.

The mechanism is diversification and flexibility. Stored supplies can cover demand while disrupted deliveries are restored. Alternative fuels can reduce pressure on oil and gas markets. New generation technologies can add supply from different sources. India’s proposed G20 Critical Minerals Circularity Initiative adds recycling to this broader strategy, helping connect mineral supply with reuse rather than only new extraction.

These alternatives are not instant replacements for existing systems. They require finance, infrastructure, technology, and coordinated policy. Jaishankar said the G20 must show understanding and leadership. His priorities suggest that resilience depends on both emergency preparedness, such as storage, and longer-term investment in cleaner and more varied energy systems.

Global energy markets are interdependent because countries buy, sell, transport, finance, and process fuels across borders. Oil and gas cargoes move through shared routes and infrastructure. A policy decision or conflict in one region can therefore change what suppliers can sell and what buyers can obtain elsewhere.

The article gives several examples of this mechanism. It mentions US sanctions on Iranian oil, a recent decision to waive Russia-linked sanctions, and attacks on energy infrastructure and ships carrying oil and gas. These actions can alter trade flows, restrict available routes, or force buyers to seek different supplies. Prices can then respond across the wider market.

Jaishankar stressed that knock-on effects and mutual dependence in a globalised market should not be underestimated. He also warned against convenient distinctions between oil and gas, saying selective carveouts speak for themselves. His proposed response is coordinated G20 leadership to keep markets open, predictable, and accessible, while expanding finance, storage, and alternative energy.