US says wants to join coalition seeking to impose price cap on Russian oil

The US today (August 26, 2022) said it wants to join a coalition seeking to impose a price cap on Russian oil aimed at squeezing revenue streams for Moscow and softening the global energy prices.

US Deputy Secretary of Treasury Wally Adeyemo, who is on a three-day visit to India, discussed with Indian policy makers the economic relations between the countries as well as measures to limit earning of Russia post its invasion of Ukraine, reports our New Delhi correspondent.

India purchased discounted Russian oil that was shunned by buyers of Europe and other places post Russia's invasion of Ukraine. India has been guarded in its criticism of Moscow.

With oil prices surging past USD 100/barrel mark, the US, along with other G7 countries, is looking at imposing some sort of price cap on Russian oil.

Adeyemo said energy and food grain trade by Russia has been kept out of sanctions and countries like India were free to enter into deals using any currency, including local currency.

"Indian policymakers are interested in learning more about joining the global price cap coalition to keep Russian fuel prices in check as it is aligned with India's objective of lowering energy prices fro consumer," Adeyemo told the media in New Delhi.

"We think that objective is aligned with our objective, which is to reduce Russia's revenue. So we're providing them with information. We're going to continue the conversation with them," he added.

On the other hand, Russia is discussing cheap long-term oil deals with Asian buyers in an attempt to counter the G7 bid to cap export prices.

"It is in the best interest of our people to get energy but also to deny Russia revenues they can use to prop up their economy and the further the war in Ukraine. Our goal ultimately is to try and build out a coalition that is going to join us in implementing the price cap," the US official said.