US has not asked India to cut Russian oil purchases, American official says

Record ID: 1819047

  • Title: US has not asked India to cut Russian oil purchases, American official says
  • Date: 4th April 2024
  • Summary: NEW DELHI, INDIA (APRIL 04, 2024) (ANI - No use India) U.S. TREASURY'S ASSISTANT SECRETARY FOR ECONOMIC POLICY, ERIC VAN NOSTRAND AND ACTING ASSISTANT SECRETARY FOR TERROR FINANCING, ANNA MORRIS SITTING IN EVENT WITH HOST MEDIAPERSONS SITTING NOSTRAND AND MORRIS LOOKING ON MEDIAPERSONS SITTING (SOUNDBITE) (English) U.S. TREASURY'S ASSISTANT SECRETARY FOR ECONOMIC POLICY, ERIC VAN NOSTRAND, SAYING: "We recognise that there will remain a robust trade of Russian oil that operates outside the G-7 coalition. What the price cap is trying to do is to change the economic incentives of the Russian oil market generally, to force Russia to sell its oil cheaper, regardless of who is buying it. Whether that's someone…in a direct G-7 nexus that's subject to the price cap regulations themselves or other global consumers who don't necessarily touch the price cap nexus, but nonetheless stand to benefit from cheaper Russian oil." REPORTERS SITTING (SOUNDBITE) (English) U.S. TREASURY'S ACTING ASSISTANT SECRETARY FOR TERROR FINANCING, ANNA MORRIS, SAYING: "Once Russian oil is refined, it's therefore from a technical perspective it is no longer Russian oil. If it is refined in a country and then sent forward, from a sanctions perspective that is an import from the country of purchase, it is not an import from Russia." REPORTERS SITTING MORRIS, NOSTRAND AND HOST ON STAGE/REPORTERS LEAVING
  • Embargoed: 18th April 2024 15:23
  • Keywords: Anna Morris Eric Van Nostrand G-7 India Russia Ukraine United States Vladimir Putin crude oil invasion oil purchase sanctions trade war
  • Location: NEW DELHI, INDIA
  • City: NEW DELHI, INDIA
  • Country: India
  • Topics: Asia / Pacific,Diplomacy/Foreign Policy,Government/Politics
  • Reuters ID: LVA001K477OSV
  • Aspect Ratio: 16:9
  • Story Text:The United States has not asked India to cut Russian oil imports as the goal of sanctions and the G7-imposed $60 per barrel price cap is to have stable global oil supplies while hitting Moscow's revenue, an American treasury official said on Thursday (April 04).
    India has emerged as one of the top buyers of Russian sea-borne oil since Western nations imposed sanctions and halted purchases in response to Moscow's invasion of Ukraine in February 2022.
    "What the price cap is trying to do is to change the economic incentives of the Russian oil market generally, to force Russia to sell its oil cheaper, regardless of who is buying it," Eric Van Nostrand, the U.S. Treasury's assistant secretary for economic policy said in New Delhi.
    The sanctions are intended to limit the options available to Russia to three: sell its oil under the price cap, offer deeper discounts to buyers if they circumvent Western services, or shut its oil wells, Nostrand added.
    The price cap imposed by the Group of Seven (G7) wealthy nations, the European Union and Australia bans the use of Western maritime services such as insurance, flagging the transportation when tankers carry Russian oil priced at or above $60 a barrel.
    Anna Morris, acting assistant secretary for terror financing at the U.S. Treasury said that G7 nations had the option to review the price cap depending on market conditions or other factors.
    Asked about the sale to Western nations of refined products produced from Russian oil, Morris said that would not breach the sanctions.
    "Once Russian oil is refined, from a technical perspective it is no longer Russian oil. If it is refined in a country and then sent forward, from a sanctions perspective that is an import from the country of purchase it is not an import from Russia," she said.
    As part of its wide-ranging sanction mechanism against Russian oil trade, the United States in February imposed sanctions on Russian state run shipper Sovcomflot (SCF)and 14 of its crude oil tankers involved in Russian oil transportation.
    The U.S. officials are in India this week meeting with government officials and business leaders to discuss cooperation on anti-money laundering, countering the financing of terrorism, and implementation of the price cap.
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