India did not support G7’s decision on Russian oil, Russia is praising it fiercely
The Russian Foreign Ministry said in a statement that Deputy Prime Minister Alexander Novak welcomed India’s decision not to support the price cap on Russian oil, which will be implemented on December 5 by the G7 countries and their Posted by associates.
Russia has welcomed India’s decision not to support the price cap on Russian oil announced by the G7 countries and their allies. Russian Deputy Prime Minister Alexander Novak gave the statement during a meeting with Indian Ambassador to Russia Pavan Kapoor. The Russian Foreign Ministry said in a statement that the deputy prime minister welcomed India’s decision not to support the price cap on Russian oil, which was imposed on December 5 by the G7 countries and their allies.
West imposes Russian cap
The G7, European Union and Australia last week agreed to cap a $60-a-barrel price cap on Russian marine crude after EU members overcame Poland’s resistance. Russia’s revenue will suffer due to the price cap. This decision has been taken because of the attack on Ukraine so that by imposing such sanctions, Russia can be separated from the rest of the world’s economy and can be weakened economically. Russia may be harmed by this cap, but due to the continued supply of crude oil in the macro economy, it will go a long way in reducing inflation.
Price cap will affect price cap
Novak said on the imposition of the Russian oil cap that it is an “anti-market measure”. Because of which there is a danger of affecting the supply chain. The introduction of a price cap on Russian oil is an anti-market measure. This disrupts the supply chain and can significantly complicate the situation in the global energy market. Such non-market mechanisms disrupt the international trading system and set a dangerous precedent.
How much did India import oil from Russia
According to the statement released by the Russian Foreign Ministry, Russian oil imports to India increased to 16.35 million tonnes in the first eight months of 2022. Notably, India continues to import oil from Russia despite the ongoing war between Moscow and Kiev. During the summer, Russia was second in terms of oil shipments to India. In addition, the delivery of oil products and coal also increased.
India is not dependent on Russian oil
Union Petroleum and Natural Gas Minister Hardeep Singh Puri recently said that the price cap on Russian crude oil will not affect India as the country’s exposure to Russian oil is not significant. In an interview with NewsBust India, Puri said that Russia is not the top supplier of oil to the country, while Saudi Arabia, Iraq and the United Arab Emirates are the traditional major suppliers of crude oil.
So Russia will reduce production
Meanwhile, President Vladimir Putin recently said that Russia, the world’s biggest energy exporter, may cut oil production and refuse to sell oil to any country. The Kremlin chief warned that attempts by the West to impose a price cap would lead to a global collapse of the oil industry and then a steep rise in prices.
