Senior US Treasury officials will persuade India to continue enforcing the restriction on the price of Russian oil

Senior US Treasury officials are in India to press New Delhi to keep enforcing the oil price ceiling, which aims to restrict Russian profits while simultaneously fostering stable international energy markets.

 

The US Department of the Treasury said in a statement on Wednesday that Acting Assistant Secretary for Terrorist Financing Anna Morris and PDO Assistant Secretary for Economic Policy Eric Van Nostrand will be visiting New Delhi and Mumbai from April 2–5 to meet with counterparts in the public and private sectors.

“They will discuss key bilateral issues, including cooperation on anti-money laundering and countering the financing of terrorism, other illicit finance issues, and continued implementation of the price cap, which seeks to further limit the profits Russia receives to fund its illegal invasion while promoting stable global energy markets,” said the statement.

After Russia invaded Ukraine in February 2022, the G7 countries, the EU, and Australia worked together to impose a price restriction.

This limit forbids tankers carrying Russian oil valued at USD 60 per barrel or more from using any Western marine services, such as transportation, flagging, or insurance.

Russia was India’s main oil supplier as of 2023.

India has maintained close defense and commercial connections with Russia while abstaining from denouncing Moscow for its conflict with Ukraine.

According to the release, on Thursday, Morris and Nostrand will discuss the price limit and take part in a Q&A session organized by the Ananta Aspen Centre in New Delhi.

In a blog article published last month, Morris and Nostrand pointed out that the price cap’s second phase is still accomplishing its two main objectives of limiting Russia’s oil earnings and promoting the stability of the energy market.

“The price at which Russia sells its oil has declined markedly since the second phase began; the shift reflects the effects of reduced oil prices globally over this period, but also a significant widening in the discount Russia earns relative to other global oil suppliers,” it said.

The statement said that participants in the energy market, analysts, and even the oil czar of Russian President Vladimir Putin have connected the growing discount on Russian oil to the Coalition’s stepped-up enforcement efforts, which are evident in the second phase of the price cap.

“The price ceiling is giving important importers like India greater clout to negotiate better deals while also assisting in preserving a constant supply of electricity for consumers and companies around the world. Putin’s earnings from selling that oil are also being decreased concurrently by the price limit and significant sanctions enforcement actions, the statement said.