Oil pumping jacks work at an oil field near Almayevsk, Tatarstan, Russia, on Wednesday, March 11, 2020.
Andrey Rudakov | Bloomberg | Getty Images
Indian Petroleum Minister Hardeep Singh Puri said on Monday that the country will carefully assess whether to support the G-7 proposal to impose a cap on the price of Russian oil.
“There are many talks going on because of a large number of factors,” Puri told CNBC’s Hadley Gamble at the Gastec 2022 in Milan, Italy.
Asked whether India would sign the G-7 proposal to impose a price cap on Russian oil, Puri said the world economy is still adjusting to the impact of the coronavirus pandemic and Russia’s invasion of Ukraine.
He said, ‘Now what will the proposal mean? We will watch it very carefully.
Puri said it was still unclear which countries would participate in the proposed price cap on Russian oil and what the potential implications for energy markets could be.
Finance Minister representing G-7 countries on Friday Agreed on plans to implement a price-capping mechanism for Russian oil exports,
The initiative is designed to undermine the Kremlin’s ability to fund its attack in Ukraine and better protect consumers amid rising energy prices.
Energy analysts are highly skeptical about the integrity of the proposal, however, warning that the policy could backfire if major consumers such as China and India are not included.
After the Kremlin’s invasion of Ukraine, China and India increased their purchases of Russian oil, taking advantage of concessional rates.
Puri said India consumes around 5 million barrels of oil per day and this comes largely from Iraq, Saudi Arabia, Kuwait and the United Arab Emirates.
Russia accounted for just 0.2% of India’s oil imports at the end of March, Puri said, noting that some criticized India for increasing Russian oil supplies after the Kremlin invasion.
“I said Europeans buy more than a quarter in an afternoon. I would be surprised if this is still not the case. But yes we will buy from Russia, we will buy from anywhere,” Puri said.
Asked whether he had a moral conflict with buying Russian oil amid the Kremlin attack in Ukraine, Puri replied, “No, there is no conflict. I have a moral duty to my consumer. Am I democratically involved? Want a situation in the form of elected government where petrol pump dried up?Look what is happening Countries around India,
the European Union has Calls on China and India to participate in G-7 initiative To reduce profits from selling oil to Russia.
Europe’s Energy Commissioner Kadri Simson told CNBC’s Sylvia Amaro on Saturday that China and India are “ready to buy Russian oil products, while pretending themselves that it is important to the security of their supplies. But Russia has to be spared.” It is unfair to pay revenue.”
It is not yet clear how the G7 will implement its pricing plan. Details are expected to emerge before the beginning of December when the European Union imposed sanctions on marine imports of Russian crude.
The G-7 includes the US, Canada, France, Germany, Italy, Britain and Japan.
Russia on Monday vowed to retaliate to the proposal and said it would stop selling oil to countries that impose price caps on Russian energy exports.
French Finance Minister Bruno Le Maire told CNBC on Saturday that efforts to impose a price cap on Russian oil require a broader international commitment to succeed.
Rather than just a Western measure, Le Maire said that the initiative “should be implemented asGlobal measure against war.,
— CNBC’s Sylvia Amaro contributed to this report.