“The supply of Russian oil and oil products to foreign legal entities and individuals is prohibited if the contracts for these supplies are using a price cap, the presidential decree said, further stating that it will come into effect from the 1st of February until the 1st July. It also said that the ban may be lifted in individual cases on the basis of a “special decision” from Russian President Vladimir Putin.
The western countries, in the month of December, set a price cap on oil from Russia at a price of $60 per barrel. The countries that took this decision included the European Union, the G7 (Canada, France, Germany, Italy, Japan, the United Kingdom and the United States of America) and Australia. They did this in order to cut Russia’s military funding.
Russia has rejected this price cap. Kremlin spokesman Dmitry Peskov said, “We will not accept this cap.” It has claimed that the cap will not affect its military funding to keep the war on in Ukraine.
The west has been trying to coax India into putting an end to the oil deal with Russia. However, India has said it will work in the best interest of its citizens.
“We will work in the interest of your country” India on Price cap
The West has been trying to coax India into putting an end to the oil deals with Russia. However, India has time and again reaffirmed that it will work in the best interests of its citizens.
The Secretary of the US Treasury, Janet Yellen said last month that India can buy as much as it wishes to buy from Russia, the Indian Oil Companies can choose to deal with India at any price they want but they will then be denied Western services like insurance, finances, and maritime services, which are bound by the price cap on Russian duel imports
Earlier this month External Affairs Minister S Jaishankar again pointed out that the European Union has imported more oil from Russia between February and November than the next 10 countries. He said it was six times what India had imported.
“The oil import in the European Union is six times what India has imported. Gas is infinite because we don’t import it,” S Jaishankar said.
The west has been closely watching India’s ties with Russia especially after the war broke out between Russia and Ukraine. Russia and India are also working to trade in the Indian Rupee instead of the US Dollar. Russia has decided to set up a Vostro account to facilitate trading in Rupee. On the basis of this, India is in talks with several other Asian, African and Latin American countries to begin trading in Indian Rupee. This could signal an end to the US’s monopoly in global trade currency and strengthen the Rupee.