On Thursday, the Ministry of External Affairs announced that the country’s approach to importing oil would be guided by its energy security requirements. This statement comes in the midst of reports indicating that there may be disagreements among Western countries over maintaining the $60-per-barrel price cap on Russian crude oil.
“We have repeatedly made it clear that our approach will be guided by our energy security requirements,” Ministry of External Affairs spokesperson Arindam Bagchi said at the weekly media briefing in response to queries concering price cap.
Last December, the G7 nations and Australia reached a consensus on a maximum price of $60 per barrel for seaborne Russian-origin crude oil, following the European Union’s decision to endorse a similar price level. The decision to impose a price cap on Russian-origin crude oil and petroleum products was initiated by the G7 finance ministers on September 2, 2022, in response to the Russia-Ukraine conflict.
In a statement, the G7 nations and Australia announced that the price cap on Russian-origin crude oil would take effect across their jurisdictions on or after December 5, 2022, with a time-limited exception for transactions involving oil that had been loaded onto a vessel prior to that date. It is unclear whether India will be affected by this policy change, as the country relies heavily on Russia as its top oil supplier.
Statement indicates that the country will prioritize its energy security requirements in determining its approach to importing oil, despite potential disagreements among Western countries over the price cap on Russian crude.