US Not Asking India to Cut Russian Oil Imports, Focus on Impacting Moscow’s Revenue
By Nidhi Verma and Krishn Kaushik
The United States has clarified that it has not requested India to reduce its imports of Russian oil. The primary objective of the sanctions and the $60 per barrel price limit imposed by the G7 is to ensure stable global oil supplies while also targeting Moscow’s income, as per a U.S. Treasury official on Thursday in New Delhi.
India as Key Buyer of Russian Oil Amid Sanctions
Following the sanctions imposed by Western nations in response to Russia’s invasion of Ukraine in February 2022, India has emerged as a significant importer of Russian sea-borne oil.
Limiting Putin’s Profits
Eric Van Nostrand, acting U.S. Treasury assistant secretary for economic policy, emphasized the importance of maintaining oil supply in the market while reducing Putin’s financial gains. He highlighted that buyers could still acquire Russian oil at lower prices outside the price cap mechanism if they avoid Western services like insurance and brokerage, thus restricting Moscow’s revenue streams.
Three Options for Russia
Van Nostrand outlined that the sanctions leave Russia with three choices: sell oil under the price cap, offer deeper discounts to buyers bypassing Western services, or shut down its wells to cope with the restrictions.
G7 Price Cap and Impact on Maritime Services
The price cap set by the G7, the EU, and Australia prohibits the use of Western maritime services for tanker transportation of Russian oil exceeding $60 per barrel, affecting insurance and flagging services.
SCF Sanctioned for Oil Transportation
As part of the broader sanctions on Russian oil trade, the U.S. imposed sanctions on Russian state-owned shipper Sovcomflot (SCF) and 14 of its tankers involved in oil transportation.
Dialogue on Anti-Money Laundering and Terrorism Financing
U.S. officials are currently engaging with Indian government representatives and business leaders to discuss cooperation on anti-money laundering, counter-financing terrorism, and the implementation of the price cap.
Refined Russian Oil Products and Sanctions Interpretation
Clarifying the sanctions, Anna Morris, acting assistant secretary for terror financing at the U.S. Treasury, stated that the sale of refined products made from Russian oil to Western nations does not violate the sanctions.
Ensure that the rewritten content meets the requirements and instructions provided. Strive for clarity and coherence in the text while enhancing details for better understanding and engagement. Remember to keep the tone conversational and maintain a natural flow throughout.
