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United States to state Indian refineries help make Russia oil cost cap work

The G7 rate cap on Russian oil deliveries is cutting the revenue that Moscow has readily available to support its invasion of Ukraine, and the mechanism's efficiency is assisted by the current actions of Indian refiners, U.S. officials will state in New Delhi on Thursday, according to prepared remarks.

The U.S. Treasury authorities, Eric Van Nostrand, assistant secretary for economic policy, and Anna Morris, acting assistant secretary for terrorist financing, will make the remarks at an occasion held by the Ananta Aspen Centre in New Delhi, the Treasury informed on Wednesday.

We understand that the Indian economy has much at stake in the Russian oil trade, and has much at stake from the global supply disruptions that the cost cap is designed to avoid, the authorities will say.

India has been among the top consumers of Russian oil because Western sanctions have shifted the market for the crude from Europe to Asia, enforcing expenses on Russia for relying on a. shadow fleet of aging tankers to deliver it further.

New Delhi has traditionally had close economic and defense. ties with Moscow and avoided slamming Russia over its. war in Ukraine. However last week the foreign ministers of Ukraine. and India said they had actually consented to bring back trade and cooperation. to levels before the Russian invasion of Ukraine.

The cost cap enforced by the G7 nations, the European. Union and Australia prohibits making use of Western maritime services. such as insurance coverage, flagging and transport when tankers. carry Russian oil priced at or above $60 a barrel. The West. imposed the system after Russia's February 2022 intrusion of. Ukraine.

The U.S. authorities are in India this week meeting with. federal government officials and business leaders to talk about cooperation. on anti-money laundering, countering the funding of terrorism,. and application of the price cap.

Because October, the U.S. has actually implemented the rate cap with. sanctions consisting of designating in February Sovcomflot (SCF),. Russia's state-owned shipping company.

The actions on Russia are helped by relocations by international. refiners, including India's Dependence Industries, to. not purchase Russian oil loaded on SCF tankers, the officials will. state.

Our efforts are boosted by worldwide support for. these enforcement actions, like the recent decision from private. and openly owned refineries to stop imports on Sovcomflot. ships, the Treasury authorities will state.

Enforcement of the price cap on Russian oil has actually hit the. price that Russia can get for its oil in worldwide markets,. lowering revenues for its war on Ukraine, the authorities will. say.

The Treasury estimates that the discount rate of Russian Urals. oil to the Brent global benchmark has widened from about. $ 12-$ 13 a barrel before October to $18 in January and to about. $ 17 to $18 in February, the last month with information offered, the. officials will state.

The United States, together with the rest of the

(source: Reuters)