Assistant Secretary for Economic Policy of the United States Department of Treasury, Eric Van Nostrand on Thursday hailed its country\u2019s decision to implement a price cap on Russian oil after the latter invaded its neighbouring Ukraine and said that the decision made Russia sell oil at discounted rates to other countries, including India.<\/p>\n
\u201cWe know that the Indian economy has much at stake in the Russian oil trade, and has much at stake from the global supply disruptions that the price cap is designed to avoid. The price cap\u2019s goals are to limit Putin\u2019s revenue and maintain global oil supply\u2013essentially by creating a mechanism for India and other partners to access Russian oil at discounted prices,\u201d he said, speaking at a session organised at the Ananta Centre office aimed at discussing phase two of the price cap on Russian oil.<\/p>\n
\u201cThe price cap\u2019s goals are to limit Putin\u2019s revenue and maintain global oil supply\u2013essentially by creating a mechanism for India and other partners to access Russian oil at discounted prices. The price cap\u2019s first year was a successful one by those standards: global oil markets remained well-supplied while Russian oil traded at a significant discount to global oil,\u201d he added. The US official underscored that the US and the price cap coalition have constrained Russia\u2019s options to sell oil to other countries.<\/p>\n
\u201cThis past summer and fall, we saw Russia\u2019s investments in new infrastructure to sell oil outside the price cap\u2019s jurisdiction begin to bear fruit, and the discount on Russian oil narrowed. In response, the United States and the Price Cap Coalition have reinvigorated our enforcement efforts and focused on constraining Russia\u2019s options to sell outside the price cap. Today, even the Kremlin has acknowledged that these efforts are forcing Russia to sell at bigger discounts to global consumers like India,\u201d he said.<\/p>\n
\u201cAdoption and successful implementation of such a novel policy is an important diplomatic achievement, reflecting the unity of the Coalition opposed to Putin\u2019s war. Our engagement with Indian partners\u2013in the public and private sectors\u2013was an essential part of the process given India\u2019s critical role in the global oil trade,\u201d he added. The United States, other G7 countries and the European Union announced a price cap of USD 60 a barrel on Russian oil in late 2022 in response to Moscow\u2019s invasion of Ukraine in February of that year.<\/p>\n
In October 2022, the US Treasury began imposing sanctions on tankers it suspected of carrying oil above the price cap, and has since designated about two dozen tankers. The cap bans Western companies from providing service such as insurance, transportation and financing for oil sold above the cap. The price cap seeks to cut Russia\u2019s ability to fund the war in Ukraine by reducing its oil revenues while also ensuring that global oil markets are well supplied. The West\u2019s sanctions have shifted much of Russia\u2019s oil trade from traditional customers in Europe to India and China, and have forced some shippers to turn to a so-called \u201cshadow fleet\u201d of ageing tankers, which the Treasury says cuts into Russia\u2019s revenues.<\/p>\n","protected":false},"excerpt":{"rendered":"
Assistant Secretary for Economic Policy of the United States Department of Treasury, Eric Van Nostrand on Thursday hailed its country\u2019s\u2026<\/p>\n","protected":false},"author":28,"featured_media":38572,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[88],"tags":[12458,12459,312,2305,12460,96,12457,12462,265,4870,681,6266,12461,95,11657],"class_list":["post-38571","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-international-relations","tag-assistant-secretary-for-economic-policy-of-the-united-states-department-of-treasury-eric-van-nostrand","tag-discounts","tag-economy","tag-g7","tag-global-supply-disruptions","tag-india","tag-price-cap","tag-price-enforcement","tag-russia-ukraine-war","tag-russian-oil","tag-sanctions","tag-tankers","tag-us-treasury","tag-usa","tag-war-funding"],"reading_time":"3 min read","_links":{"self":[{"href":"https:\/\/www.businessupturn.com\/usa\/wp-json\/wp\/v2\/posts\/38571","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.businessupturn.com\/usa\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.businessupturn.com\/usa\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.businessupturn.com\/usa\/wp-json\/wp\/v2\/users\/28"}],"replies":[{"embeddable":true,"href":"https:\/\/www.businessupturn.com\/usa\/wp-json\/wp\/v2\/comments?post=38571"}],"version-history":[{"count":0,"href":"https:\/\/www.businessupturn.com\/usa\/wp-json\/wp\/v2\/posts\/38571\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.businessupturn.com\/usa\/wp-json\/wp\/v2\/media\/38572"}],"wp:attachment":[{"href":"https:\/\/www.businessupturn.com\/usa\/wp-json\/wp\/v2\/media?parent=38571"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.businessupturn.com\/usa\/wp-json\/wp\/v2\/categories?post=38571"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.businessupturn.com\/usa\/wp-json\/wp\/v2\/tags?post=38571"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}