US, allies to complete consultations on Russia oil price cap in next few days

The US Treasury Department on Tuesday said that Washington and its allies are planning to finalize a price cap for Russian oil in the next few days as they seek to cut off a critical source of funding for Moscow, according to the news agency AFP.

A senior official informed the reporters that the European Union is consulting with its members on the Russian oil price cap and the broader coalition will take steps to implement the cap once the EU’s process is complete.

“We expect the next few days for them to complete their consultations on price setting, and for us as a coalition to move forward … implementing the price cap ahead of December 5,” the official told media persons, as quoted by AFP.

He further added that there was no reason to believe Moscow would retaliate against the new policy, as it’s not in their interest.

“Any action they take to drive up prices will have an impact on their new customers, customers like India and China,” the US Treasury Department official added.

The group of seven nations, G7 is working to set a price cap on Russian oil. The G7 decided to put such a price cap on Russian oil to limit its oil revenues. These seven nations include Canada, France, Germany, Italy, Japan, the United Kingdom, the United States and the European Union.

The price cap is specifically designed to reduce Russia’s revenues and its ability to fund the war in Ukraine and limit the impact on global energy prices, particularly for low and middle-income countries. Russia has warned that it will snap oil supplies to any country that joins the price cap plan.

Recently, Union Minister Hardeep Singh Puri said that the Indian government feels no pressure on an impending price cap on Russian crude oil proposed by the G-7. 

“We will see it when it happens. The Modi government feels no pressure. I have no fear or anxiety. The market will deal with the logistics issue if it arises. Whatever happens, will be dealt with,” Puri said. 


(With AFP inputs)








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