India will benefit from price cap on Russian oil: US treasury

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US Treasury Secretary Janet Yellen said prior to her visit to India this week that the US hopes India will benefit from the price cap on Russian oil as it already stands to take advantage of it.

The remarks were delivered in light of the G7's recent decision to cap the prices of Russian oil in an effort to prevent Russia from profiteering from its oil revenues. 

The cap is scheduled to be implemented in full force from December 5 on sea-borne oil shipments, with a second cap on oil products from February 5.

Ever since Russia's special military operation in Ukraine started, India has never stood by the sanctions imposed by the West. 

Furthermore, the country, which is the third-biggest importer of oil worldwide and Russia's second-largest oil customer after China, has well benefited from discounted Russian oil despite criticism from the West. 

"If they want to use Western financial services like insurance, the price cap would apply to their purchases," Yellen was quoted as saying by sources.

"But even if they use other financial services, we believe the price cap will give them leverage to negotiate good discounts from world markets. We would hope to see India benefiting from this programme."

The US secretary landed in India today to take part in the US-India Economic and Financial Partnership.

She met with Finance Minister Nirmala Sitharaman and discussed India's assumption of the G20 presidency.

I thank Minister Sitharaman for her welcome to India. We had the opportunity to discuss our shared economic interests and how we can work together in the coming year to face global headwinds and address common priorities. pic.twitter.com/JySpRZu2wJ

— Secretary Janet Yellen (@SecYellen) November 11, 2022

Her next destination is Bali, Indonesia, where she will be engaging in joint meetings of the G20 finance and health ministers before joining President Joe Biden at a G20 summit there on November 15 and 16.

I conclude my trip with a warm welcome of India's assumption of the G20 presidency next month. We will continue our work to drive inclusive growth, address spillovers from the COVID-19 pandemic, and uphold the rules-based international order as the world’s largest democracies. pic.twitter.com/MdXHvzQNdA

— Secretary Janet Yellen (@SecYellen) November 11, 2022

Read more: US, China Presidents to meet in Bali Nov. 14 on regional, world issues