According to an official in the Indian Oil Ministry, India would continue to purchase Russian crude oil even after the embargo and price cap go into effect on Monday, December 5. India has consistently stated its intention to continue to purchase whatever crude oil makes the most financial sense for the import-heavy country.
As cited by Attaqa, the Indian Oil Ministry official said that the sanctions placed on Russian oil won’t apply to India because they intend to use non-Western services to transport seaborne Russian crude oil into India.
With Poland now on board, the EU decided to set a cap on the price of Russian crude oil at $60 per barrel, which is more expensive than the current prices being paid for Russia’s Urals. Russia has pledged to halt exports to any nation using the price ceiling. However, India will not be covered by the price cap because it only applies to nations that want to utilise Western ships and Western insurers.
On Monday, December 5, the G7 price cap of $60 per barrel and the EU ban on Russian crude oil will take effect. In February, there will be an embargo on goods made from crude oil.
Regarding how the crude oil price cap and embargo will affect the oil markets, analysts have differing opinions. It will lessen the impact of the sanctions if India and perhaps China continue to buy Russian crude without the aid of Western services. However, experts in the field have also pointed out that there are just a few non-Western ships and insurers that can deliver Russian oil to markets.
China and India were both buying crude oil from Russia last week at a huge $33.28 discount to Brent, which shows that they are already buying well below the price cap.