India can buy as much Russian oil it wants outside price cap: Yellen
14 November, 2022 | Vaishali Sharma
US trade secretary Janet Yellen said "India can also purchase oil at any price they want as long as they don't use these Western services and they find other services. And either way is fine."
U.S. Trade Secretary Janet Yellen said on Friday that her nation is fine with India continuing to buy as much Russian oil as it wants, including at rates above a G7-imposed price cap mechanism, as long as it avoids Western insurance, finance, and maritime services that are subject to the cap.
In an interview with news agency Reuters, on the sidelines of a conference on deepening U.S.-Indian economic ties, Yellen said “India can also purchase oil at any price they want as long as they don’t use these Western services and they find other services. And either way is fine.”
Since the EU originally suggested an embargo on Russian oil in May as retaliation for Moscow’s invasion of Ukraine, the US has been pushing the idea of a limit. By refusing Western allies insurance, marine services, and financing for tanker cargoes priced beyond a certain dollar-per-barrel threshold, it aims to decrease Russia’s oil income while keeping Russian petroleum on the market.
Yellen says, “Russian oil is going to be selling at bargain prices and we’re happy to have India get that bargain or Africa or China. It’s fine,”
“Russia is going to find it very difficult to continue shipping as much oil as they have done when the EU stops buying Russian oil… They’re going to be heavily in search of buyers. And many buyers are reliant on Western services.” the trade secretary added .
Ms. Yellen’s comments came after India’s External Affairs Minister S. Jaishankar stated last week that the government will continue to import Russian crude since it benefits the country.