Russia offers India help in overcoming oil price cap imposed by West

Russia has for the second month in a row remained India's top oil supplier in November, surpassing traditional sellers Iraq and Saudi Arabia.

New Delhi, Dec 11: Russia has welcomed India's decision not to support the price cap on its oil and has offered help in overcoming ban being imposed by western nations amid the war in Ukraine.

"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. As a result, the problem of energy poverty is being aggravated not only in the developing world, but also in the developed countries of Europe," said Russian Deputy Prime Minister Alexander Novak.

In order not to depend on the ban on insurance services and tanker chartering in the EU and Britain, he offered cooperation on leasing and building large-capacity ships, said a Russian readout of the meeting.

Russia has for the second month in a row remained India's top oil supplier in November, surpassing traditional sellers Iraq and Saudi Arabia, according to data from energy cargo tracker Vortexa.

The Indian government has been vehemently defending its trade with Russia, saying it has to source oil from where it is the cheapest. The imports in November were made ahead of a price cap agreed by the EU on Russian seaborne oil.

But, the government has indicated that oil companies will continue to buy oil from Russia outside the price cap.

On December 7, External Affairs Minister S Jaishankar told the Rajya Sabha that Indian refiners will continue to look for the best deals in the interest of the country.

''We do not ask our companies to buy Russian oil. We ask our companies to buy oil (based on) what is the best option that they can get. Now, it depends on what the market throws up,'' he had said while replying to clarifications sought by MPs on his suo moto statement on foreign policy. The companies will go after sources that are more competitive, Jaishankar added.

''Please do understand it's not just we buy oil from one country. We buy oil from multiple sources, but it is a sensible policy to go where we get the best deal in the interests of the Indian people, and that is exactly what we are trying to do,'' he said.

The executive body of the European Union has asked its 27 member countries to cap the price of Russian oil at USD 60 a barrel as part of the West's attempt to squeeze Moscow's oil revenues and limit its ability to wage war in Ukraine while keeping global prices and supplies steady.

From December 5, western shipping and insurance companies are prohibited from handling Russian oil sold above the price cap. However, ships loaded with Russian oil before December 5 and unloaded at their destination before January 19, will not be subject to the price cap.