India may buy Russian crude oil at or above G-7's price cap: Finance Minister

As the ongoing war between Ukraine and Russia continues, there has been significant attention on India's import of Russian oil. With a focus on its own interests, New Delhi has been purchasing oil from Moscow at a substantial discount due to global sanctions against Russia.

India's Finance Minister, Nirmala Sitharaman, has now indicated that the country may buy Russian crude oil at or above the price cap imposed by the G-7 if necessary.

In an interview with Bloomberg, Finance Minister Sitharaman stated, "Yes, because otherwise I'll end up paying far more than what I can afford. We have a large population and we also therefore have to look at prices which are going to be affordable for us."

India, which imports nearly 80% of its crude oil requirements, needs to constantly seek the best deals in order to mitigate the risks of higher oil prices and the impacts of Russia's war in Ukraine, which are seen as the biggest threats to India's economic growth.

Although India has not signed any agreement with Western powers to impose a price cap on Russian oil, officials had previously indicated that the country was unlikely to breach sanctions on Russia. However, a recent surprise oil-output cut by OPEC+ seems to have changed India's stance.

In the meantime, despite Western sanctions, Russia's oil exports have reached their highest level in almost three years in March of this year. Moscow's crude exports rose by 100,000 barrels per day (bpd) to five million bpd, with India replacing China as the main destination for Russian shipments in Asia. However, revenues were significantly lower compared to last year, as reported by mint.