India To Continue Buying Oil From All Countries Including Russia: Official

In order to meet its energy needs, India will continue to purchase crude oil from anywhere in the world, including Russia, a top official declared before EU sanctions against Russian oil took effect.

The European Union’s executive body has requested that its 27 member nations set a price cap on Russian oil at USD 60 as part of an effort by the West to reduce Moscow’s oil revenues and restrict its ability to wage war in Ukraine while maintaining stable global oil prices and supplies.

Unlike Iran and Venezuela, there are no sanctions on buying oil from Russia. So anyone who can arrange for shipping, insurance and financing outside of the EU can buy oil,” the official said.

The price caps are part of the EU’s plan to use its clout in insurance and shipping industries to crimp Moscow.

“We will continue to buy oil from anywhere in the world including Russia,” he said.

Under the price-cap system that kicks-in from December 5, companies shipping Russian oil outside of Europe would only be able to access EU insurance and brokerage services if they sell the oil at or under USD 60.

“So for all practical purposes, if I can send a ship, cover insurance and devise a mode of payment, I can continue to buy oil from Russia,” the official said explaining how the mechanism works. “All options are on the table.”

India, the world’s third-largest crude importer after China and the United States, has been snapping Russian oil that was available at a discount after some in the West shunned it as a means of punishing Moscow for its invasion of Ukraine.

Russia and its customers must use ships, insurance, and financing beyond the G-7’s purview in order to maintain oil sales.

The US is okay with Russia selling its oil outside the cap, but it would probably be more expensive to use non-Western banking, insurance, and shipping services.

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