price cap

Churning over the West’s plan, Russia President Vladimir Putin thinks putting the price cap will limit Moscow’s crude oil revenue as it seeks to increase the damage against Russia. India, which has benefited from Russian cheap oil, yet to take any decision so far. However, the price cap, may turn out to be a key reference in India’s purchase negotiations for Russian oil and benefit the nation in getting cheaper deals

According to a media report, India said that it will examine the proposal for putting a price cap on Russian oil, on the lines of US and the European Union.

Churning over the West’s plan, Russia President Vladimir Putin thinks putting the price cap will limit Moscow’s crude oil revenue as it seeks to increase the damage against Russia. India, which has benefited from Russian cheap oil, yet to take any decision so far.

However, requests of not joining the price cap proposal have come up from officials and industry executives, as it would hurt India’s interest.

Today Russia is the second-largest supplier of oil to India. This contributes nearly to 20 per cent of the country’s crude imports, which has gone up from 1 per cent before the war.

The countries participating in the price cap plan, have been threatened by Russia to cut supplies. So, it makes no sense for India to provoke Russia and put the steady flow of cheap oil from there at risk, said an official as reported by a media house.

However, the price cap, may turn out to be a key reference in India’s purchase negotiations for Russian oil and benefit the nation in getting cheaper deals, the official added.

The recent decision of Limiting the production by OPEC has also triggered the US as the oil cartel intends to protect its revenue because of slowing demand due to recession in advanced economies. The US said that Putin will be benefitted by this decision and also this has led to dissension of ties between Washington and Riyadh