India has demonstrated “openness” in the issue of joining the initiative to limit the price of Russian oil. This statement was made on September 6 by US Deputy Secretary of the Treasury Adewale Adeyemo.
“Over the weekend, I was encouraged by a message from India’s oil minister that they were considering joining [к инициативе по введению потолка цен на российскую нефть]”, Adeyemo said in an interview with Bloomberg.
In addition, he expressed confidence that the “price ceiling” will be a successful initiative and will cause damage to the Russian oil and gas industry.
The day before, the Minister of Oil and Gas of India, Hardeep Singh Puri, during the Gastech 2022 exhibition in Italy, promised to evaluate the proposal of the G7 countries to impose a price cap on Russian oil. He noted that it remains an open question which states will take part in the proposed price cap and what implications this may have for the markets.
Independent energy expert Valdis Plavinsh noted that New Delhi’s statements carry risks primarily for the Indian side, as this measure will force Russia to take decisive actions that can sow panic in the world market, driving up energy prices to astronomical levels. Developing countries such as India will be the first to suffer, so it is not certain that New Delhi is ready to take such risks.
August 26, the largest Indian gas company GAIL is negotiating with the Russian “Gazprom” on gas supplies. It is noted that the strengthening of cooperation between companies became possible thanks to the developing mechanism of payments between Russia and India, which facilitates trade.
On June 27, Russian Ambassador to India Denis Alipov said that the supply of Russian energy resources to India had grown tenfold. Alipov noted good prospects for further cooperation between Moscow and New Delhi in the oil and gas sector and stressed that the Indian government allows its companies to purchase oil and gas from Russia at prices below the world average and does not shift the issue of rising energy prices to consumers.
On September 4, Senator Alexei Pushkov expressed the opinion that Western countries risk losing the economic confrontation with Russia if they continue to impose a price ceiling on Russian oil. According to the senator, the West is ready to make significant sacrifices in order to drive the Russian economy into a “black hole” and prevent it from winning. Now there is a competition of Russian resources against Western restrictions, on which “the fate of Western leadership will depend,” he said.
On September 2, the finance ministers of the G7 countries agreed to impose a price ceiling on oil and gas from Russia. It was noted that a special coalition would be created to coordinate all the steps. The marginal cost of Russian oil will be determined by a number of technical parameters.
The Kremlin said that in this case, the Russian Federation would redirect oil to other markets. Moscow emphasized that the adoption of such a decision would lead to a significant destabilization of the oil markets.