Russia appreciates India's decision to not support G7's price cap on Russian oil

Russia has welcomed India's decision to not support the oil price cap announced by the G7 and their allies. This appreciative statement was made during the meeting between Russian Deputy Prime Minister Alexander Novak and India's Ambassador to Russia, Pavan Kapoor on Friday, December 9. 

"The Deputy Prime Minister welcomed India's decision not to support the price cap on Russian oil, which was imposed on December 5 by the G7 countries and their allies," said the Russian Foreign Ministry in a statement during the meeting with India's ambassador, reported ANI. 

Further, Novak stressed the responsibility of Russia fulfilling its contractual obligations for energy resources and had affirmed to diversify of energy exports to the countries in the east and south that going through the energy crisis. 

Recently in September this year, G7 countries unanimously agreed to impose sanctions on Russian oil and set a price cap on oil imports from Russia. This sanction was imposed due to the Russian invasion of Ukraine with 10,000 troops. However, India had continued to import from Russia despite the ongoing tensions between Moscow and Kyiv and the decision has been defended by India's Ministry of External Affairs. According to the statement issued by the Russian Foreign Ministry, Russian oil imports to India have increased to 16.35 million tonnes in the first 8 months of 2022, reported ANI. 

Russia appreciates India's stand on the Oil price cap

In terms of oil shipments to India, Russia has been ranked in the second position and the deliveries of oil and coal have increased during the summer. In the meeting with the Indian ambassador, Kapoor, Novak invited the Minister of Petroleum and Natural Gas Hardeep Singh Puri to participate in the International forum, Russian Energy Week 2023, which will be held in Moscow, from 11 -13 October next year. 

Further, in the meeting, both sides noted the growth in trade between the two countries and expressed continuing the bilateral relationship in terms of trade in energy resources like oil, petroleum products, liquefied natural gas, coal, and fertiliser. During the meeting in the statement, Russia's Deputy PM offered cooperation to India on leasing and building large-capacity ships in order to not depend on the ban on insurance services and tanker chartering in European Union and the United Kingdom, reported ANI. 

While addressing the issue of the price cap on Russian oil, Novak has categorised the oil price cap as an "anti-market measure" that affects supply chains. 

"The introduction of a price cap on Russian oil is an anti-market measure. It disrupts supply chains and could significantly complicate the situation in global energy markets. Such non-market mechanisms disrupt the international trading system as a whole and set a dangerous precedent in the energy market," Novak said in the statement.