India to Continue Buying as Much Russian Oil as it Wants, outside the price cap, Janet Yellen Says

(CTN News) – According to U.S. Treasury Secretary Janet Yellen, India is welcome to continue purchasing as much Russian oil as it likes, even at rates exceeding a G7-imposed price ceiling mechanism, as long as it stays away from Western insurance, banking, and marine services that are subject to the quota.

In an interview with Reuters on the sidelines of a conference on strengthening U.S.-Indian economic relations, Janet Yellen said that the limit would still cut world oil prices while reducing Russia’s income.

Once the European Union stops importing, Russia won’t be able to export as much oil as it does today without using the cap price or big reductions from present levels, according to Janet Yellen.

When the EU stops purchasing Russian oil, Russia “will find it extremely difficult to continue exporting as much oil as they have done,” warned Janet Yellen.

“They’ll be actively looking for purchasers. Additionally, many consumers depend on Western services.” Other than China, India is now Russia’s biggest oil buyer.

Before a deadline of December 5, the last-minute specifics of the price ceiling that the affluent G7 democracies and Australia would impose are still being worked out.

According to Janet Yellen, the limit would enable India, China, and other significant consumers of Russian petroleum the power to negotiate a lower price from Moscow.

Russian crude “will be selling at a discount, and we’re glad that China, Africa, or India will obtain that discount. That’s okay, “Janet Yellen continued.

According to Janet Yellen to Reuters, Indian and private Indian oil businesses “may also buy oil at whatever price they want, provided they locate other services and avoid using these Western ones. Any method is acceptable.”

The limit denies insurance, marine services, and financing offered by the Western allies for tanker cargoes priced over a predetermined dollar-per-barrel cap to reduce Russia’s oil income while keeping Russian petroleum on the market.

An upper limit may be the historical average price of Russian Urals oil of $63-64 per barrel. Since the EU initially unveiled plans for an embargo on Russian oil to punish Moscow for its invasion of Ukraine in May, the United States has been promoting the idea.

INDIA WARY

Janet Yellen commented after the foreign minister of India said last week that his nation will keep purchasing Russian petroleum because it helps India.

However, some officials have said they are leery of the unproven price limit method. India’s finance and energy ministries could not comment on Janet Yellen’s statements.

“I don’t believe we will adhere to the price limit system, and we have informed the nations of this. We think most nations are at ease with it and that no one should lose access to Russian energy, “On condition of anonymity, a government official from India told Reuters.

The official said, “Stable pricing and supply are most crucial.”

To prevent its customers from having to locate tankers, insurance, or other services at the price limit, Rosneft (ROSN.MM), Russia’s biggest oil exporter, is growing its tanker charter business.

Even with Russian and Chinese tankers and a “shadow” fleet of older, decommissioned tankers and re-flagged ships, Janet Yellen said that it would be “extremely difficult for them to sell all the oil they have been selling without an acceptable price.”

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