- US imposes sanctions on Russian oil, but spares India, aiming to stabilize global oil supplies and cut into Putin’s revenues.
- Sanctions include a $60-per-barrel price cap enforced by G7, limiting Russia’s options and prompting discussions on enforcement with Indian officials.
- US engages with India to ensure cooperation in enforcing sanctions, involving measures like sanctions on Russian shipping companies.
US Sanctions on Russian Oil
The United States has not asked India to reduce its imports of Russian oil, stressing that the sanctions and the $60-per-barrel price cap imposed by the G7 are aimed at stabilizing global oil supplies while cutting into Moscow’s profits. This stance comes at a time when India is becoming a major buyer of Russian oil amid Western sanctions due to Russia’s invasion of Ukraine. Eric Van Nostrand, a US Treasury Department official, emphasized in New Delhi that the strategy is to limit President Putin’s revenues without taking Russian oil off the world market.
Impact and strategy
The sanctions and the price cap leave Russia with only three options: sell oil below the price cap, offer deeper discounts by circumventing Western services, or stop producing oil. The G7, the EU and Australia are enforcing this cap by banning Western maritime services for the transportation of Russian oil above $60 per barrel. In addition, the US has imposed sanctions on Russian shipping, including Sovcomflot and its tankers, to further restrict Russia’s ability to sell oil. U.S. officials are meeting with Indian counterparts to discuss these measures and ensure cooperation in enforcing the sanctions.
