New Delhi: European Union Group of Seven (G7) countries and Australia (Australasia) have imposed a price cap of $60 per barrel on Russian crude oil. Now Russia has refused to accept it. According to Russian news agency TASS, Kremlin spokesman Dmitry Peskov said – we are assessing the situation. Some preparations were made for this type of cap. We will not accept a price cap and we will let you know how this works.
Trying to weaken Russia
On Friday, the European Union agreed to impose a price cap on Russian oil of $60 per barrel. Since the attack on Ukraine, Western countries have imposed various sanctions on Russia. Now they want to weaken Russia’s finances by imposing a price cap on oil. Russia receives a large amount of income from oil exports. Along with the G7 countries, Australia has also agreed to impose a $60 per barrel price cap on Russian oil.
Zelensky is not happy with the price cap
The Russian oil price cap will come into effect on Monday, December 5. Western governments have agreed to cap the price of Russia’s oil exports, dealing an economic blow to it. However, Ukrainian President Volodymyr Zelensky has said that no firm price cap has been imposed on Russian oil. Because it is quite comfortable for Moscow.
India imports
Russia earns big by exporting its oil. But after this price cap, India may have to bear losses. America does not like India buying oil from Russia. The US President also criticized it. But India has not stopped importing oil from Russia.
Fall in crude oil prices
According to a source, India is still paying $15-20 per barrel less for Russian crude than Brent. This means that the cost of delivered cargo is also around the price cap. Therefore, despite the imposition of a price cap, there is unlikely to be any impact on India. On the other hand, crude oil prices in the international market have touched a 10-month low.