The Indian government is preparing to examine the US proposal to impose a price cap on Russian oil – and whether it can use the cap as a tool in any price negotiations with Moscow.
Russia is today the second-largest supplier of oil to India, making up around 20 per cent of the country’s crude imports, up from barely 1 per cent before the war.
“Russia has threatened to cut supplies to countries that participate in the price cap plan. So, it makes no sense for us to infuriate Russia and risk our steady flow of cheap oil from there,” said an official. “The price cap, however, could become the key reference in our purchase negotiations for Russian oil and benefit us in securing cheaper deals.”
