India says it will carefully consider Russia’s oil price ceiling

Oil pumping cranes work in an oil field near Almetyevsk, Tatarstan, Russia, on Wednesday, March 11, 2020.

Andrei Rudakov | Bloomberg | Getty Images

India’s Petroleum Minister Shri Hardeep Singh Puri said on Monday that the country would carefully assess whether to support the G7 proposal to impose a cap on Russian oil prices.

“There are a lot of conversations going on because of a plethora of factors,” CNBC’s Hadley Gamble said at JASTIC 2022 in Milan, Italy.

Asked if India would agree to the G7 proposal to cap the price of Russian oil, Puri said the global economy was still adjusting to the impact of the coronavirus pandemic and Russia’s invasion of Ukraine.

“Now, what does the proposal mean? We will consider it very carefully,” he said.

Puri added that it was still not clear which countries would participate in the proposed cap on Russian oil prices and what potential effects it could have on energy markets.

Finance ministers representing the G7 countries on Friday It approved a plan to implement the mechanism for setting the price ceiling for Russian oil exports.

The initiative is designed to limit the Kremlin’s ability to fund its offensive in Ukraine and better protect consumers amid rising energy prices.

Energy analysts were highly skeptical about the impartiality of the proposal, however, warning that the policy could backfire if major consumers such as China and India did not participate.

“I have a moral duty to my consumer’

The European Union has He invited China and India to participate in the G7 initiative To reduce the profits that Russia reaped from the sale of oil.

European Energy Commissioner Cadre Simpson told CNBC’s Silvia Amaro on Saturday that China and India “are willing to buy Russian oil products while excusing themselves that this is important to the security of their supplies. But it’s not fair to pay excess revenue to Russia.”

It is not yet clear how the G7 will implement its price-setting plan. Details are expected to be settled before early December, when the European Union begins sanctions on seaborne imports of Russian crude.

The G7 consists of the United States, Canada, France, Germany, Italy, the United Kingdom, and Japan.

Russia on Monday vowed to take retaliatory measures over the proposal and said it would stop selling oil to countries that impose price ceilings on Russian energy exports.

French Finance Minister Bruno Le Maire told CNBC on Saturday that efforts to cap the price of Russian oil require widespread international commitment to succeed.

Rather than just a Western action, Le Maire said the initiative should be implemented as “A global scale against war.

CNBC’s Silvia Amaro contributed to this report.

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