India’s oil minister Pankaj Jain highlighted that Indian companies sometimes encounter delays when paying for Russian oil priced above the $60 per barrel ceiling set by Western economies. This viewpoint was reported by Economic Times.
Jain explained that no one stops Indian buyers from sourcing Russian crude at prices beyond the cap. When prices exceed the limit, buyers actively explore alternative payment methods to keep imports flowing.
He noted that the majority of Russian oil arriving in India has routinely been secured at or below the $60 mark.
In related remarks, Finance Minister Nirmala Sitharaman emphasized India’s ability to procure crude from Russia at or above the G7 ceiling of $60 per barrel, underscoring the flexible financial arrangements that can support such purchases.
The price ceiling on Russian oil, adopted by the European Union, the G7, and Australia, came into effect on December 5, 2022. The cap was set at $60 per barrel and is slated for periodic review after January 15. Moscow rejected the Western price limits, and on February 1, 2023, Russia announced a ban on oil deliveries to countries enforcing the ceiling, signaling a significant shift in the global energy market.