During the ongoing Russia-Ukraine war since February 2022, Western countries are imposing various economic sanctions on Russia. Meanwhile, Russia is providing petroleum products to India at cheap rates. Now, to crack down on Russia selling oil to India, the US and its allies are planning to cap oil prices at $65 to $70 per barrel.
The G-7 group and the European Union may soon announce a price cap to crack down on Russia selling oil to India at cheap prices. If this happens, it may affect India's purchase of oil from Russia. Ambassadors of all countries involved in the European Union met on Wednesday to approve the imposition of a price cap on Russian oil and proposed a price cap level. As soon as this proposal is approved, the price cap can be announced.
India has been buying large quantities of oil from Russia since the Ukraine war. India is getting exemption on purchase of oil from Russia. Oil transactions between India and Russia are going on despite opposition from America and Western countries. According to media reports, if a price cap is imposed on Russian oil, then India will also be affected by it.
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