According to US Treasury Secretary Janet Yellen, India can continue to buy as much Russian oil as it wants, even at rates above the cap imposed by the G7, as long as it stays out of shipping services. to the fee.
In an interview with Reuters on the sidelines of a conference on strengthening economic relations between the US and India, Janet Yellen said the cap would further lower global oil prices and reduce Russia's revenues. Once the European Union stops importing, Russia will not be able to export as much oil as it does today without using the maximum price or large reductions from current levels, according to Janet Yellen.
When the EU stops buying Russian oil, Russia "will find it extremely difficult to continue exporting as much oil as it did," warned Janet Yellen. “They will actively seek buyers. In addition, many consumers depend on Western services. ”Apart from China, India is now the largest buyer of Russian oil. Ahead of the December 5 deadline, last-minute details on the maximum price the prosperous G7 democracies and Australia would charge are still being finalized.
According to Janet Yellen, the cap would allow India, China and other large consumers of Russian oil the power to negotiate a lower price with Moscow. Everything is fine, "continued Janet Yellen. According to Janet Yellen to Reuters, Indian oil companies and Indian private companies “can also buy oil at any price they want, as long as they look for other services and avoid using Western ones. Any method is acceptable."
The limit denies insurance, shipping services and financing offered by Western allies for tanker cargoes priced above a predetermined dollar-per-barrel limit to curb Russia's oil revenues and keep Russian oil on the market. An upper limit could be the historical average price of Russian Ural oil of $ 63-64 per barrel. Ever since the EU initially unveiled plans for a Russian oil embargo to punish Moscow for its invasion of Ukraine in May, the US has promoted the idea. INDIAN CARE
Janet Yellen commented after India's foreign minister said last week that her nation will continue to buy Russian oil because it helps India.
However, some officials said they were wary of the untested price cap method. Indian ministries of finance and energy were unable to comment on Janet Yellen's remarks.
We believe that most nations are comfortable with this and that no one should lose access to Russian energy, "an Indian government official told Reuters on condition of anonymity.
To avoid its customers having to seek out oil tankers, insurance or other cut-price services, Rosneft (ROSN.MM), Russia's largest oil exporter, is expanding its oil tanker leasing business. Even with Russian and Chinese tankers and a "shadow" fleet of old decommissioned oil tankers and new-flagged ships, Janet Yellen said it would be "extremely difficult for them to sell all the oil they have sold without an acceptable price". ".