Oil storage tanks in Tuapse, Russia, March 22, 2020. A G7 price cap on Russian oil shipments is cutting into the revenue Moscow can use to support its invasion of Ukraine, while recent actions by Indian refiners are helping the mechanism’s effectiveness, U.S. officials will say on Thursday, according to prepared remarks. Speaking in New Delhi.
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G7 price caps on Russian oil shipments are cutting into the revenue Moscow can use to support its invasion of Ukraine, while recent actions by Indian refiners are helping the mechanism’s effectiveness, U.S. officials will say in New Delhi on Thursday. Comment.
The U.S. Treasury Department told Reuters on Wednesday that U.S. Treasury officials, Assistant Secretary for Economic Policy Eric Van Nostrand and Acting Assistant Secretary for Terrorist Financing Anna Morris, will meet at the Ananta Agricultural University in New Delhi. The above speech was delivered at an event held by the Spong Center.
“We know the Indian economy has a lot at stake in the Russian oil trade, but also in the global supply disruptions the price cap is designed to avoid,” officials said.
India has been one of the biggest consumers of Russian oil since Western sanctions shifted the crude market from Europe to Asia, imposing costs on Russia as it relies on a “shadow fleet” of aging tankers to move crude further.
New Delhi has traditionally had close economic and defense ties with Moscow and has refrained from criticizing Russia over the war in Ukraine.But last week foreign ministers Ukraine and India said they had agreed to restore trade and cooperation to levels before Russia invaded Ukraine.
Price caps imposed by G7 countries, the European Union and Australia prohibit the use of Western shipping services such as insurance, flagging and transportation when tankers carrying Russian oil priced at or above $60 a barrel. The West implemented this mechanism after Russia invaded Ukraine in February 2022.
U.S. officials will meet with government officials and business leaders in India this week to discuss cooperation on anti-money laundering, combating the financing of terrorism and enforcing price caps.
The United States has imposed price caps since October and sanctions include Specify February Sovcomflot, or SCF, Russian state-owned shipping company.
Operations at international refineries aid operations against Russia, including Reliance Industries Indiaarrive Don’t buy from Russia The SCF tanker was carrying oil, officials said.
“Our efforts are supported by international support for these enforcement actions, such as recent decisions by private and public refiners to stop imports on Sovcomflot vessels,” Treasury officials will say.
Officials say the imposition of a price cap on Russian oil has hit Russian oil prices on global markets and reduced revenue from the war in Ukraine.
Officials said the Treasury Department estimates that the discount for Russian Urals oil to the international benchmark Brent widened to $18 a barrel in January from about $12-13 a barrel before October and continued to rise in February, the last year for which data are available. month) expands to about $17 to $18. .
“The United States and other members of the (price cap) coalition need to remain vigilant to ensure that the policy and its implementation and enforcement impose financial burdens on Russia and maintain stability in global energy markets,” officials would say.
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