NEW DELHI, Nov 10 (Reuters) – U.S. Treasury Secretary Janet Yellen will inform India on Friday that ending Russia’s battle in Ukraine is a “moral imperative,” however that financial challenges from the battle and provide strains have been drawing India and the United States nearer collectively.

In excerpts of remarks ready for supply at a Microsoft India (MSFT.O) analysis facility close to New Delhi, Yellen lauded Prime Minister Narendra Modi’s current sharper tone on the battle after he prevented condemning Russia’s invasion for a lot of the 12 months.

“Prime Minister Modi was correct when he said that this ‘is not an era of war,'” Yellen stated within the excerpts launched by the Treasury.

“I believe that ending Russia’s war is a moral imperative. It is also the single best thing we can do to help the global economy. This is a view that is broadly shared among policymakers of the world’s major economies,” Yellen stated.

Officials in India, a rustic with longstanding ties to Russia, have stated they’d continue to buy Russian oil at a reduction, as a result of this advantages India’s financial system, regardless of the efforts of the United States and Western allies to impose a value cap on Russian oil exports.

Treasury officers have stated they don’t seem to be looking for to influence India to cease shopping for Russian oil however need to strengthen U.S. ties to India by commerce and monetary integration.

Much of the main focus is to make fast-growing India a counterbalance to China in Asia and a dependable supply of products and providers for the U.S. financial system.

“The United States and India share an interest in strengthening our supply chains in a world where certain governments wield trade as a geopolitical weapon,” Yellen stated in her excerpted remarks, citing Russia’s restrictions on pure fuel gross sales to Europe for instance.

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Yellen stated India is a pure candidate for “friend-shoring,” or the diversification of American provide chains away from China and another international locations the place they’ve change into susceptible to pandemics and different disruptions, to “countries that we can count on.”

The U.S. friend-shoring method entails partnering with creating international locations like India which can be looking for to develop native industries and join them to international provide chains.

She cited a $500 million loan from the U.S. International Development Finance Corp to U.S.-based First Solar (FSLR.O) to start manufacturing photo voltaic panels within the Tamil Nadu area that can enhance India’s manufacturing capabilities.

“At the same time, it will help diversify supply chains away from China, which currently dominates over 80 percent of global solar panel production,” she stated, including that some Chinese photo voltaic merchandise are produced with pressured labor within the Xinjiang area.

“The United States will continue to deepen our business and commercial ties with India as we pursue our friend-shoring agenda,” Yellen stated.

Reporting by David Lawder; Editing by Josie Kao

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