India has agreed to consider the G7 proposal to cap Russian oil prices

Oleksiy Yarmolenko

Indian Oil Minister Hardeep Singh Puri said that his country is ready to consider the proposal of the "Big Seven" (G7) to impose a price cap on Russian oil. At the same time, some local refineries continue to make plans to purchase Russian oil after the beginning of December, when they plan to introduce such a restriction.

Reuters writes about it.

Currently, the G7 countries are working to implement these restrictions by December 5, when the embargo on Russian oil goes into effect in the European Union.

“I think thereʼs an exception for Japan on Sakhalin. Thereʼs oil that comes through the pipeline, so they have exceptions. We will have to look into it,” the minister said when asked if India would stick to the planned cap on Russian oil prices.

After the invasion, India became Russiaʼs second largest oil customer after China. Currently, Indiaʼs position on the price cap is being closely watched around the world as a test of how effective the plan to curb Russian oil revenues will be.

The price cap plan requires G7 countries to refuse insurance, financial, brokerage, navigation and other services for oil cargoes whose price exceeds a yet-to-be-determined maximum price for oil and petroleum products.

  • On October 6, the European Union approved the eighth package of sanctions against Russia. It contains a ban on the import of Russian products worth €7 billion and a cap on oil prices. The EU also extended sanctions against individuals and Russian companies involved in illegal "referendums" on the territory of Ukraine.
  • At the beginning of September, the USA announced that the G7 countries would set a price limit for Russian oil by December 5. Countries want to see it at the level of $40-60 per barrel, which will seriously affect Russian revenues.