India has decided not to violate Western sanctions imposed on Russia. Delhi will thus comply with the oil price cap, Bloomberg wrote with reference to its sources.
Indian officials discussed anti-Russian sanctions with their colleagues from the G7 countries on the sidelines of the ministerial G20 meeting in early March, the agency said. The parties were satisfied with the results of the negotiations, the source said.
India decided not to violate the $60 price cap on Russian oil.
Against the backdrop of the European embargo, India has become one of Russia's key oil markets. At the same time, local refineries buy raw materials at a price below the cap level of $60 per barrel. This policy allows Indian refineries to access Western insurance and transportation services.
It was reported in February that Indian state-run company Hindustan Petroleum came across a problem when paying for purchased Russian oil in connection with Western sanctions that came into force on December 5, 2022.
Many banks refuse to make payments not to fall under secondary sanctions. Hindustan Petroleum started looking for reliable alternative banking channels.
It is worthy of note that oil deals between Russia and India have threatened the dominance of the US dollar that has been used as a universal means of payment in international oil trade for decades. Most transactions between India and Russia are concluded in non-dollar currencies, including the dirham and the ruble.