US not asked India to halt Russian oil imports

The United States has not asked India to cut Russian oil imports as the goal of sanctions and the G7-imposed $60 per barrel price cap is to have stable global oil supplies while hitting Moscow’s revenue, an American treasury official said. India has emerged as one of the top buyers of Russian sea-borne oil since Western nations-imposed sanctions and halted purchases in response to Moscow’s invasion of Ukraine in February 2022.

In an effort to manage global oil supplies amidst the Ukraine conflict, the United States has clarified its position regarding India’s purchase of Russian oil. According to US treasury officials, the objective of the sanctions and the $60 per barrel price cap imposed by the G7 is to ensure stable oil supplies globally while limiting Moscow’s revenues.

The United States, in alignment with the G7-imposed price cap, has said that it has not requested India to cease its purchase of Russian oil.

This comes amidst the backdrop of India emerging as a leading buyer of Russian oil following the imposition of sanctions by Western nations in response to Moscow’s military actions in Ukraine. Eric Van Nostrand, the US treasury’s assistant secretary for economic policy, emphasized the importance of maintaining oil market stability.

The sanctions and price cap mechanism are designed to limit Russia’s options, encouraging the sale of oil under the price cap or at deeper discounts if buyers circumvent Western services. Anna Morris, acting assistant secretary for terror financing, highlighted the flexibility of the G7 nations to adjust the price cap based on market conditions. Additionally, the recent sanctions against Russian state-run shipper Sovcomflot (SCF) and specific vessels underline the targeted approach to hinder Russia’s oil trade revenue.

Despite the complex sanctions landscape, the US acknowledges India’s position as a significant importer of Russian oil, recognizing the transformation of Russian crude post-refinement as no longer subject to sanctions.

With both nations continuing discussions on anti-money laundering and counter-terrorism financing, the US-India cooperation appears robust in navigating the sanctions regime effectively.