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US says talks with India on value cap on Russian oil ‘encouraging’

The US treasury secretary has mentioned talks with India to suggest a value cap on Russian oil have been “encouraging” as a unified West is pushing economies to chop Moscow’s inflating oil revenues to present a possible blow to the Kremlin’s battle chest.

Janet Yellen mentioned she is feeling optimistic about Washington’s initiative. The subject had additionally dominated the G7 and G20 summits in Bavaria and Bali, which have been attended by India.

“We’ll see the place they arrive out. The conversations I’ve had have typically been encouraging,” Ms Yellen instructed Reuters aboard a navy plane on her method from Indonesia to South Korea.

A value cap mechanism would work by bringing the world’s greatest economies on board that might use methods like banning insurance coverage or financing for Russian oil shipments above a sure mounted quantity. The measure will slice Russia’s earnings from its oil gross sales after the surge in costs appeared to melt the blow of the sanctions.

Crude oil costs propelled above $120 a barrel in March following the Russia-Ukraine invasion and are anticipated to soar to $175 a barrel.

Russia’s most vocal adversaries, such because the US, Germany, France, and Britain, are striving to deliver one of many greatest crude oil shoppers, India and China, on board as their gross sales of Russian crude oil have virtually doubled because the invasion.

It additionally stays a difficult job as New Delhi and Beijing, allies of Russia, have stopped in need of immediately calling out Moscow for the invasion however have raised issues over the human rights scenario in Kyiv.

US treasury secretary Janet Yellen speaks throughout a information convention, forward of the G20 Finance Ministers


A senior Treasury official mentioned India was but to make any promise on the oil value cap, however was working with the US and had not “expressed hostility to this concept”.

Referring to the 40-year excessive of 9.1 per cent inflation, Ms Yellen final week mentioned: “A value cap on Russian oil is one in all our strongest instruments to deal with the ache that People and households internationally are feeling on the fuel pump and the grocery retailer proper now.”

Ms Yellen mentioned she had productive conferences with a bunch of nations over a proposed value cap on oil on the sidelines of G20 assembly which was additionally attended by Russia.

“On power prices, I had productive bilateral conferences with over a half-dozen of my counterparts the place we mentioned the deserves of a value cap and the way it will help us obtain our objectives of denying [Russian president Vladimir] Putin income for his battle machine, whereas dampening power prices,” Ms Yellen mentioned.



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