India to support US-proposed price cap on Russian crude oil only if supplies from Venezuela, Iran assured

New Delhi: India will support the US-proposed price cap on Russian crude only if oil supplies from countries like Venezuela and Iran are assured. It is important to mention in this context earlier Finance Minister Nirmala Sitharaman defended India’s stepped-up buys of cheap Russian crude, mentioning that the Centre is basically doing what is best for the economy.
India—the world’s third-biggest oil importer—is 85 per cent dependent on imports for meeting its oil needs, and the country cannot accept a situation in which open market prices soar due to uncertain and limited supplies, while a cap is imposed on cheaper sources.
“How can discussion on cap happen when supply sources are restricted?” a government official told ET. “You can talk about a cap after Venezuela and Iran supplies are available in the market.”
Late last month, US deputy treasury secretary Wally Adeyemo said the US administration has invited India to join the Russia oil price cap coalition to cut Moscow’s earnings from crude.
On Friday, G-7 finance ministers decided to impose the restriction, opting to figure out its details later. However, Russia criticised the measure, mentioning it would cut supplies to countries that put this in place.
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