Agencies-Gaza post
US wants China, India to pay Russia less for crude oil
Washington is attempting to create a buyers’ cartel that would set a price cap on Russian oil
The US State Department believes that China and India, the two current major buyers of Russian oil, should be part of the proposed oil price cap mechanism, Assistant Secretary of State for the Bureau of European and Eurasian Affairs Molly Montgomery said on Wednesday.
“China and India are importers of Russian oil, and I can say that we are very actively working with partners and allies to help develop a proposal [to limit the price of Russian oil]‘ Montgomery said during a news conference.
“We see this [price cap] as an opportunity for countries to do something in the international interest, pay less for energy imports and stabilize the global oil market, so countries should be interested,” she added.
According to Erik Woodhouse, the US deputy assistant secretary for economic and business affairs, the involvement of both China and India in the deal could persuade other countries to join.
“Obviously, China and India are important buyers of Russian oil. I can say we were [talking] working most intensively with partners and allies to help draft a proposal… perhaps this can work, as can reaching out to countries we would like to see participate or otherwise support the price cap,‘ said Woodhouse.
In an interview with the Wall Street Journal published earlier Wednesday, Treasury Secretary Janet Yellen said the US plans to set a price cap on Russian oil that would be profitable enough for the country to continue production. She didn’t give the exact figures but explained that the mechanism will require that any tanker carrying Russian oil receive financing and insurance from US, UK, and EU institutions only if the selling price of the oil is below the cap lie.
Also on Wednesday, US National Security Advisor Jake Sullivan noted that the introduction of the price cap mechanism will take time due to the many details that need to be worked out. However, he added that Washington has already discussed the measure with a number of key oil-consuming countries, including China and India.
China’s Commerce Ministry confirmed on Thursday that the issue of Russia’s oil price cap was discussed between Janet Yellen and China’s Vice Premier Liu He earlier this month. According to a ministry statement, the issue of the price cap is complex and should be resolved based on the desire of the parties involved to ease tensions in Ukraine.
