India buys Russian oil much cheaper than the G7 price ceiling – media
India buys oil from the Russian Federation significantly cheaper than the price ceiling set by the G7 countries – according to US officials, this is good both for the Indian economy and for the stabilization of oil markets.
It is reported Bloomberg with reference to the words of top State Department officials who spoke on condition of anonymity.
The Biden administration will continue to discuss India’s purchases of Russian oil with government officials, but for now is content with New Delhi buying oil at prices well below the price ceiling.
India’s purchases of Russian oil have been a constant topic of discussion between the US and India as Washington seeks to deprive Russia of revenue to finance its war machine in the war against Ukraine. According to officials, the fact that India buys oil at a significant discount from the price ceiling is good for both the Indian economy and the stabilization of oil markets.
In recent months, import-dependent India has seized the opportunity afforded by the discount on Russian oil. A little more than a year ago, it almost did not buy oil from the Russian Federation, but now the South Asian market has become decisive for Moscow due to the closure of Western markets. That’s unlikely to change even if China reopens after a long lockdown due to the pandemic.
However, India’s ability to benefit from lower prices currently faces some challenges. Refinery and banking executives said the need to prove that imports meet the $60-a-barrel cap now requires additional steps and checks, which could affect purchasing volumes.