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(Bloomberg) — India will seek a broader consensus before backing U. S. -led efforts to limit the value of Russian oil, which U. S. officials are expected to boost this week when they visit Mumbai and New Delhi.
The South Asian nation, which has one of the biggest buyers of Russian oil since the invasion of Ukraine, is reluctant to sign the plan unless a consensus is reached with all buyers, according to other people familiar with the matter, who ask not to be known because the deliberations are not public.
Most likely, this message will be conveyed to the U. S. Undersecretary of the Treasury. U. S. Secretary of State Wally Adeyemo and his team in meetings with Indian government officials and business leaders Wednesday through Friday. Value limits, which they say will deprive Russia of the revenues that finance its invasion of Ukraine without taking the oil off the market and causing an increase in value.
The effectiveness of an oil price cap can only depend on commitments from key consumers such as China and India, which boosted Russia’s oil purchases after peak buyers moved away from their barrels after the invasion of Ukraine.
The coalition to limit Russian oil costs has expanded and several countries have joined it, Adeyemo said on a occasion in Mumbai on Wednesday, adding that it will “pre-empt the coalition’s announcements. “
Indian policymakers worry that the price cap compromise could disrupt their supply of discounted Russian crude, other people said. a deficit of the record industry.
Adeyemo is also calling on India to step up its surveillance of sales of products made from Russian crude, one of the other people said. of Russian oil had traveled to New York. In March, the United States banned the import of Russian crude and petroleum products.
Treasury spokesman Michael Kikukawa said Adeyemo was in India to talk about “a number of issues,” adding energy security. reduce the value of power in India, the United States and around the world,” he said in an email.
Kikukawa commented on how Indian officials see the value limit. A spokesman for India’s Ministry of Finance responded to calls for comment.
The European Union approved at the end of the year a ban on imports of Russian oil transported by sea and, in conjunction with the United Kingdom, banned its companies from financing or insuring such shipments. Officials worry that the bans could block a significant portion of Russian production and raise global costs to around $140 a barrel.
Brent oil, the global benchmark, settled above $100 a barrel on Tuesday for the first time since early August, recently peaking near $140 in March.
(Updates to upload Adeyemo’s comments to paragraph 5)
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