Novak hails India’s decision not to maintain oil price ceiling

Deputy Prime Minister of the Russian Federation Alexander Novak welcomed the decision of the Indian government not to support the ceiling imposed by the West on Russian oil prices, transmits government press office.

“The introduction of a price ceiling for Russian oil is an anti-market measure. It disrupts supply chains and can significantly complicate the situation in global energy markets,” Novak said during a meeting with Indian Ambassador to Russia Pawan Kapoor. The Deputy Prime Minister also noted Russia’s responsible approach to fulfilling its contractual obligations for the supply of energy resources in the context of the energy crisis.

As part of the above-mentioned meeting, the parties noted the record growth in trade between Russia and India, and also expressed their readiness to increase trade in energy resources, including oil, coal, fertilizers, etc.

The trade turnover between Russia and India in 2021 increased by 46.5% and amounted to over $13.5 billion. In the period from January to September 2022, the trade turnover reached $20.4 billion, exceeding the figure for the previous year. According to the results of eight months of the current year, the supply of Russian oil to the Indian market increased to 16.35 million tons. It is noted that in the summer Russia took second place in the shipment of this energy resource to India. In addition, the export of oil products and coal increased.

On December 3, the EU countries agreed on a price ceiling for Russian oil of $60 per barrel. The document was published in the Official Journal of the EU on 4 December. The restriction came into force on December 5, along with a ban on the supply of Russian oil by sea to the EU countries. In addition to the EU countries, the G7 countries and Australia also joined the ceiling.