The U.S. Treasury Secretary Janet Yellen said India could buy Russian oil as long as it was under the price cap of $60 per barrel.
Context
On December 5, the EU, G7, and Australia imposed a price cap on Russian crude oil transported by ships. According to The Times of India, this move aimed to reduce Russia's ability to finance the ongoing war with Ukraine and maintain stability in the oil market. On November 11, U.S. Treasury Secretary Janet Yellen and Indian Union Finance Minister Nirmala Sitharaman addressed the ninth meeting of the India-U.S. Economic Financial Partnership. Yellen told Reuters, "The United States is happy for India to continue buying as much Russian oil as it wants, including at prices above a G7-imposed price cap mechanism, if it steers clear of Western insurance, finance and maritime services bound by the cap." The statement came before the price cap was announced.
In Fact
The G7 put a price cap on Russian oil of $60 per barrel. Shipping companies will only be allowed to provide tankers for transport if the cap is adhered to. According to Reuters, India has bought crude oil from Russia well below the price cap of $60 per barrel set by the G7 nations. The news agency calculated that India bought oil at $32-35 per barrel.
Business Standard reported that the price cap on Russian oil might affect India's purchases. India mostly buys Russian oil from the Urals. According to the latest data, Urals crude price is trading at $49 per barrel, well below the price cap.
The Verdict
Janet Yellen said India could buy as much Russian oil as it wants under the price cap. According to the reports, India has bought oil at a price well below the cap imposed by the G7 nations. Therefore, we mark this claim as partly true.
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