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Russia welcomes India’s stand to not support G7’s price cap on crude oil
Russia has welcomed India’s decision to not support the price cap on Russian oil announced by the G7 countries and their allies. Russian Deputy Prime Minister Alexander Novak made the statement during his meeting with India’s Ambassador to Russia, Pavan Kapoor.
“The Deputy Prime Minister welcomed India’s decision not to support the price cap on Russian oil, which was imposed on 5 December by the G7 countries and their allies,” the Russian Foreign Ministry said in a statement.
The Group of Seven major powers, the European Union and Australia last week agreed to a $60 per barrel price cap on Russian seaborne crude oil after EU members overcame resistance from Poland.
The price ceiling seeks to restrict Russia’s revenue as punishment for its assault on Ukraine while making sure Moscow keeps supplying the global market.
Novak described introducing a price cap on Russian oil as an “anti-market measure” which he stressed affects supply chains. “The introduction of a price cap on Russian oil is an anti-market measure. It disrupts supply chains and could significantly complicate the situation in global energy markets. Such non-market mechanisms disrupt the international trading system as a whole and set a dangerous precedent in the energy market,” Novak said in the statement.
According to the statement issued by the Russian Foreign Ministry, Russian oil imports to India rose to 16.35 million tonnes in the first eight months of 2022. Notably, India continues to import oil from Russia despite the ongoing war between Moscow and Kyiv.
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