Key Points
New Delhi: The US has not asked India to reduce its imports of Russian oil, two US officials said on Monday, adding that the price cap and sanctions regime imposed by the G7 are aimed at squeezing Moscows profits from crude sales and impeding its ability to finance the war in Ukraine.o)..
The US officials, speaking after meetings to brief their Indian counterparts on the second phase of implementing the price cap, which came into effect in December 2022, said the focus will now be on channels created by Russia to export crude without using Western service providers for shipping or insurance..
The US officials declined to answer questions regarding India paying for Russian oil in currencies such as the UAE dirham and acknowledged the price cap of $60 a barrel would not apply to crude imports that did not use shipping or services from the Western coalition..
The price cap imposed by the G7, European Union and Australia prohibits the use of Western services such as insurance and transportation when tankers carry Russian oil priced above $60 a barrel..
Phase two of the price cap is intended to make it harder for Russia to move oil outside services offered by the Western coalition, thereby forcing it to sell more oil either under the cap with coalition services or importantly, offering even bigger discounts to other global buyers outside the coalition, Nostrand said..
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