At around half of Russian oil is transported by ships registered in the EU and a price cap may reduce access to these. Initially, the West had pressed India along with other countries to stop purchasing Russian oil. The scenario, however, has now changed the tactics as keeping Russian oil off the global market can push up already high prices
The petroleum minister of India, Hardeep Singh Puri said that India does not fear the proposal on price cap from the west as it may constrain shipping and delay in the flow of Russian oil, on 16 November.
While responding to a query on whether he feared the price cap proposal on Russian oil could leave fewer tankers available in order to carry oil from Russia, Puri said that he I has no anxiety on that. The market will deal efficiently with that, he added.
At around half of Russian oil is transported by ships registered in the EU and a price cap may reduce access to these.
Ever since the Russia-Ukraine war began, the import of Russian oil has gone up severely. It went up from being under 1 per cent of India’s imports from the previous year to nearly 20 per cent. During October, the Russia became the major supplier to India.
Initially, the West had pressed India along with other countries to stop purchasing Russian oil. The scenario, however, has now changed the tactics as keeping Russian oil off the global market can push up already high prices. The West, now expect other countries to purchase Russian oil within a cap that would be finalised. In order to reduce Moscow’s energy revenue.
The Gas Authority of India Limited (GAIL) and Russia’s Gazprom are discussing the problems relating to liquefied natural gas supply disruption, said the minster. Although Gazprom hasn’t supplied for months, it has a long-term supply pact with GAIL.