Moscow hails India’s stand on oil price cap

Moscow has welcomed India’s decision not to stick to the G7’s decision of imposing a price cap on Russian oil. Russia’s Deputy Prime Minister Alexander Novak conveyed this message during his meeting with Pavan Kapoor, India’s Ambassador to Russia.

The Deputy Prime Minister welcomed India’s decision not to support the price cap on Russian oil, which was imposed on 5 December by the G7 countries and their allies,” the Russian Foreign Ministry said in a statement.

With India deciding not to adhere to the price cap, the move may not impact Russia significantly.

The New York Times said that there are serious questions over whether such a plan can be enforced, and whether Russia and its main buyers, including China and India, will go along with the price set by the Group of 7 industrialized nations.

The G7 imposed a price cap of $ 60 on Russian oil after Moscow’s Ukraine invasion.

Meanwhile, according to a report by Bloomberg, Russia may decide to cut its oil production in response to the G-7 move capping the price of its crude

A decision on Moscow’s response will be announced in a presidential decree within the next several days, Russian President Vladimir Putin told reporters in comments broadcast on state Rossiya 24 TV, providing no further details, Bloomberg added.

Notwithstanding pressures from the West, India has continued to import crude from Russia at a discounted rate.

Moscow continues to be India’s primary crude supplier ahead of Iraq and Saudi Arabia.

Also read: Russia says won’t recognise any Western price cap on its oil