INDIA will seek broader consensus before it supports US-led efforts to cap the price of Russian oil, which American officials are expected to push for this week when they go to Mumbai and New Delhi.
india has emerged as one of the biggest buyers of Russian oil since the invasion of Ukraine, is slow to join the plan unless a consensus is reached with all buyers.
That message will likely be conveyed to US deputy Treasury Secretary Wally Adeyemo during forthcoming talks.
Talks with Treasury Secretary Janet Yellen have led efforts to get allies on board with the price cap idea, which they anticipate will starve Russia of revenues that fund its invasion of Ukraine without taking oil off the market and triggering a price spike.
The effectiveness of an oil-price cap could hinge on commitments from key customers such as China and India, which have boosted oil purchases from Russia.
The coalition for putting a price cap on Russian oil has broadened and a number of countries have joined, Mr Adeyemo said at an event in Mumbai, adding that he was ‘not going to get ahead of announcements by the coalition’.
Indian policymakers fear that committing to the price cap will disrupt its access to discounted Russian crude, the people said. The world’s third-largest buyer, which imports 85 per cent of its oil needs, has relied on cheaper Russian supplies to provide relief from inflation near seven per cent and a record trade deficit.
Mr Adeyemo is also expected to ask India to strengthen its monitoring of where products made from Russian crude are sold. The request comes after US Treasury officials flagged that a shipment of a material used to make plastic produced at an Indian refinery from Russian oil had made its way to New York. The US in March banned the import of Russian crude and refined petroleum products.
