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Expansion
Restrictions on Russia’s oil exports have been in place since the attack on Ukraine, however, India has been unaffected by it. Meanwhile, US Finance Minister Janet Yellen, who is visiting India, has clarified that India can buy as much oil as it wants from Russia. Above the maximum oil price cap he can buy Russian oil.
Yellen said that America would be happy if India and other countries take advantage by bargaining with Russia. Apart from China, India is Russia’s largest oil customer. The G-7 countries are going to fix the maximum price of Russian oil from 5 December. However, its final details are yet to come. Yellen said that Russia is negotiating oil prices and we are happy that India, Africa or China are buying oil from Russia through bargaining. Yellen said on Friday that India can buy as much oil as it wants from Russia. He can buy oil even more than the price cap of G7. The price cap will reduce world oil prices, while Russia’s revenues will also drop.
Yellen, who was in New Delhi to attend a meeting on the India-US economic partnership, said that due to the price cap, Russia will not be able to sell more oil. It will be very difficult for Russia to continue exporting oil. The European Union has stopped buying oil from him. In such a situation, Russia will find it difficult to find buyers other than China.
Yellen clarified that if India wants to use insurance and other Western financial services, it will have to comply with the price cap. This will give it an opportunity to get discount in the world market. We are hopeful that the price cap will benefit India.
Jaishankar had said that India will continue to buy oil from Russia
US Finance Minister Yellen’s remarks came after Indian Foreign Minister Jaishankar’s statement. Jaishankar had said last week that his country would continue to buy crude from Russia as it benefits India. While the finance and energy ministries have yet to comment on Yellen’s statement, other officials have said they are cautious about the price cap. It does not appear that India will follow the price cap. We have told other countries also.