India Has To Avoid US Services To Purchase Oil From Russia: US Treasury

As long asAs long as India stays away from Western insurance, finance, and maritime services that are subject to the cap, the United States, India stays away from Western insurance, finance, and maritime services that are subject to the cap, the United States, according to Treasury Secretary Janet Yellen, is happy for India to continue buying as much Russian oil as it wants, even at prices above a price cap mechanism imposed by the G7.

On the margins of a conference on strengthening economic links between the United States and India, Yellen spoke with the news agency Reuters “As long as India doesn’t use these Western services and instead finds other ones, they are free to buy oil at whatever price they choose. Any way is acceptable.”

Since the EU first suggested an embargo on Russian oil in May as retaliation for Moscow’s invasion of Ukraine, the US has been pushing the idea of a cap. By denying Western allies insurance, maritime services, and financing for tanker cargoes priced above a set dollar-per-barrel cap, it aims to decrease Russia’s oil revenues while keeping Russian crude on the market.

With the cap in place, India, China, and other significant consumers of Russian crude oil would have the power to negotiate a lower price with Moscow.

“Russian oil is going to be selling at deep discounts, and we’re pleased to see India, Africa, or China obtain that discount,” says Yellen. It’s okay,”

“When the EU stops purchasing Russian oil, Russia will find it very difficult to continue delivering as much oil as they have done… They’ll be actively looking for purchasers. Additionally, a lot of consumers depend on Western services. Added the Treasury Secretary

“We have informed the nations that we do not believe the price cap mechanism would be followed. We think that most nations are peaceful.