Aimed at squeezing revenue streams of Moscow, as part of sanctions post Russia’s invasion of Ukraine, the US on Friday urged India to join a coalition seeking to impose a price cap on Russian oil.
“Indian policy makers are interested in learning more about joining the global price cap coalition to keep Russian fuel prices in check as it is aligned with India’s objective of lowering energy prices for consumers,” US Deputy Secretary of Treasury Wally Adeyemo, who is on a three-day visit to India, told reporters.
Adeyemo met Finance Minister Nirmala Sitharaman and discussed issues pertaining to economic relations between the two nations and measures to limit the earnings of Russia after its invasion of Ukraine. The two also discussed Indo-Pacific Economic Framework and India’s G20 Presidency.
“We think that objective is aligned with our objective, which is to reduce Russia’s revenue. So we’re providing them with information. We’re going to continue the conversation with them,” he added.
The West imposed sanctions on Russia after its invasion of Ukraine and countries in Europe started reducing their imports of oil and gas. India, however, saw an opportunity and increased its oil imports from Moscow.
Adeyemo said energy and foodgrain trade by Russia has been kept out of sanctions and nations like India were free to enter into deals using any currency, including local currency.
The war has disrupted the global supply chain which has resulted in rising prices of crude oil and some food products.
While the G7 countries are inclined towards having a price ceiling on Russian oil, Russia is discussing cheap long-term oil deals with Asian buyers in an attempt to counter the G7 bid to cap export prices.
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Adeyemo said there is no decision on the final price but it should take into account that the oil production does not become unviable for Russia.
“It is in the best interest of our people to get energy but also to deny Russia revenues that they can use to prop up their economy and the further the war in Ukraine. Our goal ultimately is to try and build out a coalition that is going to join us in implementing the price cap,” he said.