The United States is completely happy for India to proceed shopping for as much Russian oil as it wants, together with at costs above a G7-imposed value cap mechanism, if it steers away from Western insurance, finance and maritime companies certain by the cap, U.S. Treasury Secretary Janet Yellen mentioned on Friday, Reuters reported.
The cap would nonetheless drive world oil costs decrease whereas curbing Russia’s revenues, Yellen mentioned in an interview with Reuters on the sidelines of a convention on deepening U.S.-Indian financial ties.
Russia won’t be able to promote as much oil as it does now as soon as the European Union halts imports with out resorting to the capped value or important reductions from present costs, Yellen added.
“Russia is going to find it very difficult to continue shipping as much oil as they have done when the EU stops buying Russian oil,” Yellen mentioned.
India is now Russia’s largest oil buyer apart from China.
The existence of the cap would give India, China and different main consumers of Russian crude leverage to push down the worth they pay to Moscow, Yellen mentioned.
Russian oil “is going to be selling at bargain prices and we’re happy to have India get that bargain or Africa or China. It’s fine,” Yellen added.
Yellen mentioned that India and personal Indian oil firms “can also purchase oil at any price they want as long as they don’t use these Western services and they find other services. And either way is fine.”
Yellen’s remarks have been made after India’s overseas minister mentioned final week that his nation would proceed to buy Russian crude as a result of it advantages India.
