While current US sanctions against Russia do not prevent other countries from buying Russian oil, the warnings raise hopes that Washington will try to limit other countries’ purchases to normal levels.
The US official’s remarks came during the two-day visit of Russian Foreign Minister Sergei Lavrov to New Delhi and the ongoing visit of US Deputy National Security Adviser for Economics Dalip Singh.
Refiners in India, the world’s third-largest oil importer and consumer, have been procuring Russian oil through spot tenders since the war broke out on February 24, taking advantage of discounts left behind by other buyers. India has bought at least 13 million barrels of Russian oil since February 24, compared to about 16 million barrels in 2021.
“The US has no objection to buying Russian oil from India, provided it buys it at a discount without significantly increasing it from previous years,” said the source, who spoke on condition of anonymity. “Some increase is allowed,” said the source, who did not offer further details.
A spokesman said the State Department was aware of talks between Russia and India regarding oil purchases. “We continue to pressure the Kremlin to end its devastating war against Ukraine as soon as possible, including strong sanctions on the importance of strong collective action to India and our partners around the world,” the spokesperson said. .
The spokesman said the Biden administration is coordinating with India and European countries to reduce the impact of Russia’s Ukraine invasion of energy markets, while encouraging steps to reduce dependence on Russian energy.
The US Treasury Department declined comment and the White House’s National Security Council did not immediately respond to requests for comment.
US sanctions are eroding the ability of Russia, which typically produces about 1 in every 10 barrels of global oil, to bring crude to market. The Paris-based International Energy Agency has estimated sanctions and buyer reluctance could remove 3 million barrels per day of Russian crude and refined products from global markets by April.
The source said Washington has no problem if India settles trade with Russia in rupees or continues to pay in dollars, provided the transactions are in line with sanctions and with permitted entities.
India is working out a mechanism to settle trade with Russia, including payments in rupees.
“Whatever they are paying, whatever they are doing, they should be in compliance with the sanctions. If not, they are putting themselves at a huge risk,” the source said.
“As long as they are complying with the restrictions and there is not a significant increase in purchases, we are fine,” the source said.
Russia is facing international sanctions led by Western nations aimed at isolating it from the global economy, including cutting it off the SWIFT global bank messaging system and restricting transactions by its central bank. [
The White House has slapped sanctions against Russian entities and individuals among others, crippling Moscow’s economy.
The Biden administration has also banned U.S. imports of Russian energy, including oil. But it has so far not targeted Russia’s oil and gas exports to other countries, as the administration weighs the impacts on global oil markets and U.S. motor fuel prices.
New Delhi has called for an immediate ceasefire in Ukraine but has refused to explicitly condemn Moscow’s actions. It has abstained from voting on multiple UN resolutions on the war.
US President Joe Biden said this month India was “somewhat shaky” in acting against Russia.
The US official said India should use the mechanisms created by the United States that exempt energy transactions, and import oil from the ‘permitted entities’.
“We, over the next several days and weeks, are going to be stepping up enforcement of sanctions. We are telling everybody, everywhere around the world to ensure you are compliant with sanctions … this is the message to everyone”.
The US sanctions have granted a waiver till June 24 for settling energy trade with the Central Bank of Russia.
This story has been published from a wire agency feed without modifications to the text. Only the headline has been changed.
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