Two senior US Treasury officials are visiting India to engage with Indian counterparts and promote the implementation of an oil price cap aimed at limiting profits to Russia while ensuring stable global energy markets.
According to an official announcement, Acting Assistant Secretary for Terrorist Financing Anna Morris and PDO Assistant Secretary for Economic Policy Eric Van Nostrand are scheduled to meet with government and private sector representatives in New Delhi and Mumbai from April 2-5.
Their discussions will focus on various bilateral issues, including cooperation on anti-money laundering, countering the financing of terrorism, and the continued implementation of the price cap. The price cap aims to restrict Russia’s profits from oil sales, which are used to fund its illegal invasion of Ukraine, while also stabilizing global energy markets.
The price cap, implemented by the G7 nations, the European Union, and Australia following Russia’s invasion of Ukraine in February 2022, prohibits the use of Western maritime services for tankers transporting Russian oil priced at or above USD 60 per barrel.
Despite India’s strong economic and defense ties with Russia, the country emerged as Russia’s top oil supplier in 2023. However, India has refrained from openly criticizing Moscow over its conflict with Ukraine.
Morris and Nostrand are expected to deliver remarks on the price cap and participate in a Q&A session hosted by the Ananta Aspen Centre in New Delhi. They emphasized in a blog post last month that the second phase of the price cap has been effective in limiting Russia’s oil profits and maintaining energy market stability.
The declining price at which Russia sells its oil, along with a widening discount relative to other global oil suppliers, reflects the success of the second phase of the price cap. This increased discount is attributed to the Coalition’s intensified enforcement activities under the price cap.
Overall, the price cap aims to ensure a steady supply of energy to global consumers, provide key importers like India with more bargaining power, and reduce Putin’s profits from oil sales. The visit of US Treasury officials underscores the importance of international cooperation in addressing the economic impact of geopolitical conflicts and maintaining energy market stability.
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