The Russian rouble’s instability reveals a weakness in President Valdimir Putin’s tight-lipped economy, which the Kremlin’s economic team promptly patched up, allowing the currency to temporarily regain its stability, The Associated Press reported.

The Russian economy is beset by a challenge: how to finance the military without weakening the national currency and overheating the economy with inflation. Reports say that the patch, an emergency interest rate increase, cannot solve this problem.

A few economic setbacks are clear, particularly for the auto sector when Western manufacturers stopped doing business in Russia. However, Chinese auto imports have been steadily increasing.

Although it is exorbitantly expensive and constrained by visa and airline restrictions, the wealthy continue to manage it and those on low incomes couldn’t afford it to begin with.

Russia being one of the largest oil exporters in the world is now under pressure to devalue its currency because of Western sanctions that are reducing the amount of money it makes from exporting oil. As a result, the country’s trade surplus with the rest of the globe is decreasing. Additionally, Russian consumers and businesses are purchasing more imported goods.

The rouble is usually supported when export revenues exceed import expenses. While the rouble has progressively fallen due to the shrinking trade surplus, Moscow has gained because a lower exchange rate actually makes it easier for the government to pay its expenditures.

This is due to the fact that the dollars made from the sale of oil may be converted into more rubles, which can then be used to fund government operations, employee wages, and pensions.

However, the Russian ruble fell to its lowest on August 14, below 100 rubles to the dollar. In order to reduce local demand for imports, the central bank implemented a significant emergency interest rate increase of 3.5 percentage points. After the rate hike, the currency increased to 92 to the dollar, but it has since slowly declined; on Wednesday, it was trading at 96 to the dollar.

Even while the currency rate is lower than it was at 60 rubles to the dollar last year, an economic crisis may not arise if a freefall can be prevented.

Following the 2014 capture of Ukraine’s Crimean Peninsula, the Kremlin has worked to protect the economy from sanctions. By forbidding imports from the European Union, it also forced manufacturers to obtain parts locally and has moved food production to local businesses.

The government has strong reserves and little debt as a result of oil revenue, while sanctions have blocked nearly half of those reserves.

But in the long run, Robin Brooks, chief economist at the Institute of International Finance, warned that Putin’s military spending and sanctions are putting Russia's economy under “slow burn” strain.

Not all is lost for Russia&nbsp;

Despite extensive sanctions related to the Ukraine conflict and the departure of hundreds of well-known Western enterprises, life in Moscow appears to be going on as usual.

On first glance, malls don’t appear to have altered, but consumers now find new apparel companies like Maag and Vilet where Zara and H&amp;M once had their stores.&nbsp;Additionally, the Krispy Kreme that once had its outlet in the Evropeyskaya Mall could be confused for the doughnut vendor Krunchy Dream as the branding is identical. Banks offer stickers with a chip that allows mobile payment as Apple Pay is no longer operational in the country.

Reports say that economic indicators are within normal bounds. Economic growth has exceeded expectations, unemployment is low, and inflation, which was 4 per cent in July according to Russian standards, is high for those with low incomes.

As more items pass through neighbouring nations like Kazakhstan and Armenia to evade sanctions, imports into Russia are on the rise. Money is being given to people and businesses through government spending on the military and social programs, some of which is being spent on imported goods.

Salaries are also being supported by labour shortages brought on by emigration, while government-backed mortgages encourage real estate transactions.

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The Russian rouble’s instability reveals a weakness in President Valdimir Putin’s tight-lipped economy, which the Kremlin’s economic team promptly patched up, allowing the currency to temporarily regain its stability, The Associated Press reported.

The Russian rouble’s instability reveals a weakness in President Valdimir Putin’s tight-lipped economy, which the Kremlin’s economic team promptly patched up, allowing the currency to temporarily regain its stability, The Associated Press reported. The Russian economy is beset by a challenge: how to finance the military without weakening the national currency and overheating the economy with inflation. Reports say that the patch, an emergency interest rate increase, cannot solve this problem. A few economic setbacks are clear, particularly for the auto sector when Western manufacturers stopped doing business in Russia. However, Chinese auto imports have been steadily increasing. Although it is exorbitantly expensive and constrained by visa and airline restrictions, the wealthy continue to manage it and those on low incomes couldn’t afford it to begin with. Russia being one of the largest oil exporters in the world is now under pressure to devalue its currency because of Western sanctions that are reducing the amount of money it makes from exporting oil. As a result, the country’s trade surplus with the rest of the globe is decreasing. Additionally, Russian consumers and businesses are purchasing more imported goods. The rouble is usually supported when export revenues exceed import expenses. While the rouble has progressively fallen due to the shrinking trade surplus, Moscow has gained because a lower exchange rate actually makes it easier for the government to pay its expenditures. This is due to the fact that the dollars made from the sale of oil may be converted into more rubles, which can then be used to fund government operations, employee wages, and pensions. However, the Russian ruble fell to its lowest on August 14, below 100 rubles to the dollar. In order to reduce local demand for imports, the central bank implemented a significant emergency interest rate increase of 3.5 percentage points. After the rate hike, the currency increased to 92 to the dollar, but it has since slowly declined; on Wednesday, it was trading at 96 to the dollar. Even while the currency rate is lower than it was at 60 rubles to the dollar last year, an economic crisis may not arise if a freefall can be prevented. Following the 2014 capture of Ukraine’s Crimean Peninsula, the Kremlin has worked to protect the economy from sanctions. By forbidding imports from the European Union, it also forced manufacturers to obtain parts locally and has moved food production to local businesses. The government has strong reserves and little debt as a result of oil revenue, while sanctions have blocked nearly half of those reserves. But in the long run, Robin Brooks, chief economist at the Institute of International Finance, warned that Putin’s military spending and sanctions are putting Russia's economy under “slow burn” strain. Not all is lost for Russia Despite extensive sanctions related to the Ukraine conflict and the departure of hundreds of well-known Western enterprises, life in Moscow appears to be going on as usual. On first glance, malls don’t appear to have altered, but consumers now find new apparel companies like Maag and Vilet where Zara and H&M once had their stores. Additionally, the Krispy Kreme that once had its outlet in the Evropeyskaya Mall could be confused for the doughnut vendor Krunchy Dream as the branding is identical. Banks offer stickers with a chip that allows mobile payment as Apple Pay is no longer operational in the country. Reports say that economic indicators are within normal bounds. Economic growth has exceeded expectations, unemployment is low, and inflation, which was 4 per cent in July according to Russian standards, is high for those with low incomes. As more items pass through neighbouring nations like Kazakhstan and Armenia to evade sanctions, imports into Russia are on the rise. Money is being given to people and businesses through government spending on the military and social programs, some of which is being spent on imported goods. Salaries are also being supported by labour shortages brought on by emigration, while government-backed mortgages encourage real estate transactions. WATCH WION LIVE HERE

Russia’s earning from oil stays low as war expenses mount: Report  

Controversy erupted after a Russian journalist was&nbsp;forced out of the press room before the joint press briefing of Pakistan Foreign Minister Bilawal Bhutto and his Ukrainian counterpart&nbsp;Dmytro Kuleba in Islamabad on Thursday.&nbsp;

The journalist identified as Ruslan Bekniyazov is the senior correspondent of the ITAR-TASS news agency in Pakistan. The incident took place on the first day of Kuleba's two-day bilateral visit to the South Asian nation.&nbsp;&nbsp;

According to local media reports,&nbsp;Bekniyazov was pushed out of the press room at the suggestion of the Ukrainian embassy in Pakistan. The officials conveyed to the foreign office that no Russian journalists be allowed to attend the joint presser.&nbsp;

After the incident, the Russian embassy in Pakistan took to Twitter to release a statement and sought clarity on the issue.&nbsp;

“Russian embassy in Pakistan stands in solidarity with the Pakistani colleagues of a Russian journalist&nbsp;@RBekniyazov. It is inadmissible to violate reporters’ rights to access information,” the embassy tweeted.

"It is inadmissible to violate reporter's right to access information, In this regard, the Embassy requested the @ForeignOfficePk to provide clarity on the incident," it added.&nbsp;

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Notably, the tweet was soon deleted, suggesting that some communication had taken place between the two countries.&nbsp;

<h2>Pak received first shipment of oil from Russia</h2>

Experts stated that the incident can offset the relations between Russia and Pakistan after the latter imported the first shipment of oil from Moscow in April. At a time when Pakistan is still facing economic hardships, despite securing a bailout package from International Monetary Fund (IMF), the cheap Russian crude offers an opportunity to balance its cash books.&nbsp;

<a href="https://www.wionews.com/south-asia/pakistan-purchases-first-cargo-of-discounted-russian-oil-584524">Also read |&nbsp;Pakistan purchases first cargo of discounted Russian oil</a>

On Friday, during the meeting, both Pakistan and Ukraine denied that an arms supply deal was in place in the backdrop of the Russian invasion.&nbsp;&nbsp;

“I can confirm there are no intergovernmental arrangements between Pakistan and Ukraine in this area," said&nbsp;Kuleba,&nbsp;whose visit was the first&nbsp;by any foreign minister of Ukraine since the two countries established bilateral ties in 1993.

<a href="https://www.wionews.com/videos/is-pakistans-economic-crisis-getting-worse-550882">WATCH |&nbsp;Is Pakistan's economic crisis getting worse?</a>

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Despite toeing a neutral stance on the war, reports have emerged multiple times, suggesting that Pakistan may have been supplying arms to Ukraine.&nbsp;

Akin to Kuleba,&nbsp;Bilawal also rebutted such reports, claiming that Pakistan&nbsp;was strictly adhering to the policy of non-partisanship.

“We find it regrettable that certain media outlets are trying to publish unfounded reports alleging military supplies to Ukraine,” said Bilawal, adding,&nbsp;“Since the war began we have not concluded any agreement on defence supplies to Ukraine keeping in view our principled and consistent non-partisan position."

(With inputs from agencies)

&nbsp;

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Controversy erupted after a Russian journalist was forced out of the press room before the joint press briefing of Pakistan Foreign Minister Bilawal Bhutto and his Ukrainian counterpart Dmytro Kuleba in Islamabad on Thursday.

Controversy erupted after a Russian journalist was forced out of the press room before the joint press briefing of Pakistan Foreign Minister Bilawal Bhutto and his Ukrainian counterpart Dmytro Kuleba in Islamabad on Thursday. The journalist identified as Ruslan Bekniyazov is the senior correspondent of the ITAR-TASS news agency in Pakistan. The incident took place on the first day of Kuleba's two-day bilateral visit to the South Asian nation. According to local media reports, Bekniyazov was pushed out of the press room at the suggestion of the Ukrainian embassy in Pakistan. The officials conveyed to the foreign office that no Russian journalists be allowed to attend the joint presser. After the incident, the Russian embassy in Pakistan took to Twitter to release a statement and sought clarity on the issue. “Russian embassy in Pakistan stands in solidarity with the Pakistani colleagues of a Russian journalist @RBekniyazov. It is inadmissible to violate reporters’ rights to access information,” the embassy tweeted. "It is inadmissible to violate reporter's right to access information, In this regard, the Embassy requested the @ForeignOfficePk to provide clarity on the incident," it added. Notably, the tweet was soon deleted, suggesting that some communication had taken place between the two countries. Pak received first shipment of oil from Russia Experts stated that the incident can offset the relations between Russia and Pakistan after the latter imported the first shipment of oil from Moscow in April. At a time when Pakistan is still facing economic hardships, despite securing a bailout package from International Monetary Fund (IMF), the cheap Russian crude offers an opportunity to balance its cash books. Also read | Pakistan purchases first cargo of discounted Russian oil On Friday, during the meeting, both Pakistan and Ukraine denied that an arms supply deal was in place in the backdrop of the Russian invasion. “I can confirm there are no intergovernmental arrangements between Pakistan and Ukraine in this area," said Kuleba, whose visit was the first by any foreign minister of Ukraine since the two countries established bilateral ties in 1993. WATCH | Is Pakistan's economic crisis getting worse? Despite toeing a neutral stance on the war, reports have emerged multiple times, suggesting that Pakistan may have been supplying arms to Ukraine. Akin to Kuleba, Bilawal also rebutted such reports, claiming that Pakistan was strictly adhering to the policy of non-partisanship. “We find it regrettable that certain media outlets are trying to publish unfounded reports alleging military supplies to Ukraine,” said Bilawal, adding, “Since the war began we have not concluded any agreement on defence supplies to Ukraine keeping in view our principled and consistent non-partisan position." (With inputs from agencies) WATCH WION LIVE HERE:

Russian journalist expelled from joint presser of Ukrainian, Pakistan foreign ministers

India's import of&nbsp;Russian oil has reached unprecedented levels, surpassing the combined oil purchases from Saudi Arabia, Iraq, the UAE, and the US.

India imported 1.96 million barrels per day&nbsp;from Russia in May alone, marking a 15 percent increase from the previous high in April. These statistics, obtained from energy cargo tracker Vortexa, highlight Russia's rising dominance in India's crude oil market, constituting almost 42 percent of all oil imported that month.

The surge in Russia's share came at the expense of traditional Middle Eastern suppliers. Shipments from Saudi Arabia dropped to their lowest level since February 2021, totaling 560,000 tonnes. The Organization of the Petroleum Exporting Countries (OPEC) also witnessed a decline, with its share in India's oil imports reaching an all-time low of 39 percent in May. Previously, OPEC, primarily comprising countries from the Middle East and Africa, accounted for up to 90 percent of India's crude oil imports. However, the availability of discounted Russian oil following Moscow's invasion of Ukraine in February last year prompted a shift in India's import sources.

For the eighth consecutive month, Russia emerged as the largest single supplier of crude oil to India.&nbsp;The country has&nbsp;now surpassed&nbsp;the combined purchases from Iraq and Saudi Arabia, which were India's primary suppliers in the past decade, as well as the UAE and the US. Iraq supplied 0.83 million bpd of oil in May, while the UAE shipped 203,000 bpd, and the US accounted for 138,000 barrels per day.

Factors Driving the Trend

The dramatic increase in imports from Russia can be attributed to Indian refiners capitalizing on the availability of abundant Russian crude, which is offered at a discount compared to other grades. Previously, Indian refiners were deterred by high freight costs associated with Russian oil, but they now find it economically favorable. Refiners have grown confident in processing Russian crude, leading to a voracious appetite for this source. Industry experts cited by various news agencies predict that Indian refiners will continue to increase their reliance on Russian crude as long as they can back off from spot crude purchases.

One of the key drivers behind the surge in imports is the favorable pricing. In April, the average cost of Russian crude, including freight costs, landed on Indian shores at $68.21 per barrel, the lowest level since the Ukraine conflict began. In comparison, Saudi Arabian crude was priced at $86.96 per barrel, while Iraqi oil stood at $77.77 per barrel. Although the May import price has not yet been released, the cost advantage enjoyed by Russian oil makes it an attractive option for Indian refiners.

Russia's increased oil sales to India are partly attributed to the European Union's ban on Russian seaborne oil imports and the imposition of a $60-per-barrel price cap in December. These restrictions prevent other countries from utilizing EU shipping and insurance services unless they sell oil below the cap. Industry officials have revealed that Indian refiners are leveraging the UAE's dirham to pay for oil imported at prices lower than $60, further facilitating the Russian oil trade.

India's import of Russian oil has reached unprecedented levels, surpassing the combined oil purchases from Saudi Arabia, Iraq, the UAE, and the US. India imported 1.

India's import of Russian oil has reached unprecedented levels, surpassing the combined oil purchases from Saudi Arabia, Iraq, the UAE, and the US. India imported 1.96 million barrels per day from Russia in May alone, marking a 15 percent increase from the previous high in April. These statistics, obtained from energy cargo tracker Vortexa, highlight Russia's rising dominance in India's crude oil market, constituting almost 42 percent of all oil imported that month. The surge in Russia's share came at the expense of traditional Middle Eastern suppliers. Shipments from Saudi Arabia dropped to their lowest level since February 2021, totaling 560,000 tonnes. The Organization of the Petroleum Exporting Countries (OPEC) also witnessed a decline, with its share in India's oil imports reaching an all-time low of 39 percent in May. Previously, OPEC, primarily comprising countries from the Middle East and Africa, accounted for up to 90 percent of India's crude oil imports. However, the availability of discounted Russian oil following Moscow's invasion of Ukraine in February last year prompted a shift in India's import sources. For the eighth consecutive month, Russia emerged as the largest single supplier of crude oil to India. The country has now surpassed the combined purchases from Iraq and Saudi Arabia, which were India's primary suppliers in the past decade, as well as the UAE and the US. Iraq supplied 0.83 million bpd of oil in May, while the UAE shipped 203,000 bpd, and the US accounted for 138,000 barrels per day. Factors Driving the Trend The dramatic increase in imports from Russia can be attributed to Indian refiners capitalizing on the availability of abundant Russian crude, which is offered at a discount compared to other grades. Previously, Indian refiners were deterred by high freight costs associated with Russian oil, but they now find it economically favorable. Refiners have grown confident in processing Russian crude, leading to a voracious appetite for this source. Industry experts cited by various news agencies predict that Indian refiners will continue to increase their reliance on Russian crude as long as they can back off from spot crude purchases. One of the key drivers behind the surge in imports is the favorable pricing. In April, the average cost of Russian crude, including freight costs, landed on Indian shores at $68.21 per barrel, the lowest level since the Ukraine conflict began. In comparison, Saudi Arabian crude was priced at $86.96 per barrel, while Iraqi oil stood at $77.77 per barrel. Although the May import price has not yet been released, the cost advantage enjoyed by Russian oil makes it an attractive option for Indian refiners. Russia's increased oil sales to India are partly attributed to the European Union's ban on Russian seaborne oil imports and the imposition of a $60-per-barrel price cap in December. These restrictions prevent other countries from utilizing EU shipping and insurance services unless they sell oil below the cap. Industry officials have revealed that Indian refiners are leveraging the UAE's dirham to pay for oil imported at prices lower than $60, further facilitating the Russian oil trade.

Russia becomes India's top oil supplier, surpasses Saudi Arabia and Iraq

India has emerged as one of the top buyers of Russian oil after Moscow invaded Ukraine. Historically allies, the two countries are settling a greater share of the trade in national currencies after Russia was cut off from the US dollar-dominated global payments systems.

India has emerged as one of the top buyers of Russian oil after Moscow invaded Ukraine. Historically allies, the two countries are settling a greater share of the trade in national currencies after Russia was cut off from the US dollar-dominated global payments systems. Though it seems like a win-win situation for everybody, there is a problem. Russia does not know how to reap the benefits of this trade. Moscow is currently accumulating $1 billion in rupee assets each month that remain stranded outside the country, primarily due to the lopsided trade relationship, a Bloomberg report has claimed. Every quarter, the trade imbalance is likely to generate the equivalent of $2 billion to $3 billion that Russia can’t use. Over the course of 2022, the amount would have added to an estimated $147 billion in net foreign assets built up abroad, the report added. The sum stuck is huge and it can be gauged by the fact that Russia spent 5.51 trillion rubles or $68 billion on defence in 2022, according to a Reuters report. WATCH | How fuels from Russian oil are getting backdoor entry into Europe via India × India-Russia back to the drawing board To find an alternative, the two nations have gone back to the drawing board. One of the ways out is to establish various payment mechanisms, including investments in India’s capital markets by Russian entities. However, the solution is still not simple as Russia cannot use the entire tranche as India has restrictions over capital flows by foreign investors. The other option is to use currencies of a third country such as China's yuan or UAE's dirham. Though an agreement on such a solution is highly unlikely. "Russia’s trade with India is increasingly imbalanced. India’s exports to Russia haven’t caught up with booming imports, but there’s a limited appetite in Russia to save its current-account surplus in rupees," said Alexander Isakov, Russia economist at Bloomberg Economics. "There are no alternative oil importers of India's calibre on the horizon for Russia, so exporters and banks will gradually accept settlement in rupees," he added. Will India increase oil imports? Even if India wanted to increase its oil imports, Moscow decreasing the discount on oil prices has done no favour to bolster that sentiment. Steep discounts that New Delhi enjoyed through most of FY23 have plunged due to Chinese demand and a cut at the oil producers' end, a Mint report claimed recently. Also read | India losing 'steep discounts' on Russian crude oil due to China: Report During FY23, by providing discounts amidst the Ukraine conflict, Russia became a significant provider of oil to Indian refiners for the first time. As a result, in the 11 months leading up to February of the previous fiscal year, India imported crude oil worth $27 billion from its strategic partner, placing the Russian Federation in second place for Indian oil imports. (With inputs from agencies) WATCH WION LIVE HERE:

Russia does not know what to do with $147bn in rupees it has amassed

Veteran oil industry analyst Paul Sankey has sounded the alarm on&nbsp;the rising&nbsp;Russian oil exports to Asia and its threat&nbsp;to Saudi Arabia's dominance in the global oil market.&nbsp;

In a recent interview with Bloomberg TV, Sankey pointed out that Saudi Arabia's price premiums were being eroded by the increasing competition from Russian oil, making it a pressing concern for the oil-rich kingdom.

Sankey expressed skepticism towards Saudi Arabia's claims that market short sellers were solely responsible for the underwhelming oil prices. Instead, he emphasised that the overall oil balance, particularly the challenge posed by Russia, should be the primary focus for the Saudis.&nbsp;

While squeezing speculators may provide short-term relief, the long-term problem lies in addressing the competition from Russia and maintaining market share, he argued.&nbsp;

"Frankly, I don't know why they're so obsessed with speculators. I mean, you can squeeze speculators on a short-term basis. But the real problem is the overall oil balance," Sankey told Bloomberg TV on Wednesday.

The Quest For Asian Domination Begins

Focusing on Russia's strategy, Sankey said that Russia has been redirecting its oil exports towards Asian markets, thereby cutting into the traditional long-term Saudi premium for selling oil to Asia. He emphasized that the impact of this competition between the two oil giants on market share and overall competition is far more significant than currently appreciated.

Sankey also pointed out that despite the seemingly good relations between Russian President Vladimir Putin and Saudi Crown Prince Mohammed bin Salman, it is still being determined whether the same rapport extends to their respective oil ministers. This potential tension between the two oil giants raises concerns as they have previously coordinated production efforts.

Russia's efforts to diversify its energy exports stem from the sanctions that have&nbsp;restricted its access to European markets. Consequently, Russia has sought alternative destinations for its oil exports, with China and India accounting for approximately 90 percent of its seaborne crude shipments.&nbsp;

Moreover, Russia's Deputy Prime Minister, Alexander Novak, recently hinted at the possibility of supplying 40 percent of China's energy needs, indicating a sustained reliance on the Asian market.

As the global oil landscape continues to evolve, Saudi Arabia faces a formidable challenge from Russia's expanding presence in Asia. To maintain its position as a dominant player in the oil market, Sankey told Bloomberg TV that the kingdom must find effective strategies to compete with Russia's growing influence.&nbsp;

(With agency inputs)

Veteran oil industry analyst Paul Sankey has sounded the alarm on the rising Russian oil exports to Asia and its threat to Saudi Arabia's dominance in the global oil market.

Veteran oil industry analyst Paul Sankey has sounded the alarm on the rising Russian oil exports to Asia and its threat to Saudi Arabia's dominance in the global oil market. In a recent interview with Bloomberg TV, Sankey pointed out that Saudi Arabia's price premiums were being eroded by the increasing competition from Russian oil, making it a pressing concern for the oil-rich kingdom. Sankey expressed skepticism towards Saudi Arabia's claims that market short sellers were solely responsible for the underwhelming oil prices. Instead, he emphasised that the overall oil balance, particularly the challenge posed by Russia, should be the primary focus for the Saudis. While squeezing speculators may provide short-term relief, the long-term problem lies in addressing the competition from Russia and maintaining market share, he argued. "Frankly, I don't know why they're so obsessed with speculators. I mean, you can squeeze speculators on a short-term basis. But the real problem is the overall oil balance," Sankey told Bloomberg TV on Wednesday. The Quest For Asian Domination Begins Focusing on Russia's strategy, Sankey said that Russia has been redirecting its oil exports towards Asian markets, thereby cutting into the traditional long-term Saudi premium for selling oil to Asia. He emphasized that the impact of this competition between the two oil giants on market share and overall competition is far more significant than currently appreciated. Sankey also pointed out that despite the seemingly good relations between Russian President Vladimir Putin and Saudi Crown Prince Mohammed bin Salman, it is still being determined whether the same rapport extends to their respective oil ministers. This potential tension between the two oil giants raises concerns as they have previously coordinated production efforts. Russia's efforts to diversify its energy exports stem from the sanctions that have restricted its access to European markets. Consequently, Russia has sought alternative destinations for its oil exports, with China and India accounting for approximately 90 percent of its seaborne crude shipments. Moreover, Russia's Deputy Prime Minister, Alexander Novak, recently hinted at the possibility of supplying 40 percent of China's energy needs, indicating a sustained reliance on the Asian market. As the global oil landscape continues to evolve, Saudi Arabia faces a formidable challenge from Russia's expanding presence in Asia. To maintain its position as a dominant player in the oil market, Sankey told Bloomberg TV that the kingdom must find effective strategies to compete with Russia's growing influence. (With agency inputs)

Russia challenges Saudi Arabia's throne in Asian oil trade: Veteran analyst

India's External Affairs Minister S Jaishankar on Tuesday schooled the European Union and its foreign policy chief Joseph Borrell after the latter called for action against&nbsp;Indian selling refined products made from Russian crude oil.&nbsp;

Urging&nbsp;Borrell to look inwards, Jaishankar said,&nbsp;"Look at EU Council regulations, Russian crude is substantially transformed in the third country and not treated as Russian anymore. I would urge you to look at Council's Regulation 833/2014."

Earlier,&nbsp;Borrell, in an interview with the Financial Times egged Brussels to crack down on India reselling Russian oil into Europe as refined fuel, including diesel.&nbsp;

"If diesel or gasoline is entering Europe ... coming from India and being produced with Russian oil, that is certainly a circumvention of sanctions and member states have to take measures," the EU's chief diplomat said.

"That India buys Russian oil, it's normal... But if they use that in order to be a centre where Russian oil is being refined and by-products are being sold to us...  we have to act," Borrell said.

<a href="https://www.wionews.com/videos/wion-dispatch-eam-jaishankar-defends-indias-stance-on-russian-oil-in-parliament-540991">WATCH |&nbsp;WION Dispatch: EAM Jaishankar defends India's stance on Russian oil in Parliament</a>

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<h2>India's clear approach to serving its own interests</h2>

This is not the first instance when Jaishankar has stood up to the bully tactics of the West. Last year, the EU and other Western nations caused a row by calling out India repeatedly for buying Russian oil at discounted prices.&nbsp;

However, Jaishankar&nbsp;took a rather strong approach and shut them by remarking, "Buying Russian gas is not funding the war."

"Why it's only Indian money and fund coming from India and not gas coming to Europe which funds war, let's be even-handed out," said Jaishankar at the Globsec 2022 Bratislava forum.

"Why countries in Europe and West and the United States, why don`t they allow Iranian oil in the market why don't they allow Venezuela oil to come to the market? They have squeezed every other source of oil we have and then say you will not go to the market and get the best deal for the people, it's not a fair approach," he added.&nbsp;

<a href="https://www.wionews.com/india/buying-russian-gas-is-not-funding-the-war-says-jaishankar-484836">ALSO READ:&nbsp;Buying Russian gas is not funding the war, says Jaishankar</a>

In December last year, during a joint press conference&nbsp;with his German counterpart Annalena Baerbock, Jaishankar once again laid bare the facts and exposed the West for its hypocrisy.&nbsp;&nbsp;

"Our trade with Russia is at a very small level- USD 12-13 billion, in comparison to European countries. We've also given the Russians a set of products... I don't think people should read more into it other than the legitimate expectations of any trading country to increase its trade," said the EAM.&nbsp;

(With inputs from agencies)

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India's External Affairs Minister S Jaishankar on Tuesday schooled the European Union and its foreign policy chief Joseph Borrell after the latter called for action against Indian selling refined products made from Russian crude oil.

India's External Affairs Minister S Jaishankar on Tuesday schooled the European Union and its foreign policy chief Joseph Borrell after the latter called for action against Indian selling refined products made from Russian crude oil. Urging Borrell to look inwards, Jaishankar said, "Look at EU Council regulations, Russian crude is substantially transformed in the third country and not treated as Russian anymore. I would urge you to look at Council's Regulation 833/2014." Earlier, Borrell, in an interview with the Financial Times egged Brussels to crack down on India reselling Russian oil into Europe as refined fuel, including diesel. "If diesel or gasoline is entering Europe ... coming from India and being produced with Russian oil, that is certainly a circumvention of sanctions and member states have to take measures," the EU's chief diplomat said. "That India buys Russian oil, it's normal... But if they use that in order to be a centre where Russian oil is being refined and by-products are being sold to us...  we have to act," Borrell said. WATCH | WION Dispatch: EAM Jaishankar defends India's stance on Russian oil in Parliament × India's clear approach to serving its own interests This is not the first instance when Jaishankar has stood up to the bully tactics of the West. Last year, the EU and other Western nations caused a row by calling out India repeatedly for buying Russian oil at discounted prices. However, Jaishankar took a rather strong approach and shut them by remarking, "Buying Russian gas is not funding the war." "Why it's only Indian money and fund coming from India and not gas coming to Europe which funds war, let's be even-handed out," said Jaishankar at the Globsec 2022 Bratislava forum. "Why countries in Europe and West and the United States, why don`t they allow Iranian oil in the market why don't they allow Venezuela oil to come to the market? They have squeezed every other source of oil we have and then say you will not go to the market and get the best deal for the people, it's not a fair approach," he added. ALSO READ: Buying Russian gas is not funding the war, says Jaishankar In December last year, during a joint press conference with his German counterpart Annalena Baerbock, Jaishankar once again laid bare the facts and exposed the West for its hypocrisy. "Our trade with Russia is at a very small level- USD 12-13 billion, in comparison to European countries. We've also given the Russians a set of products... I don't think people should read more into it other than the legitimate expectations of any trading country to increase its trade," said the EAM. (With inputs from agencies) WATCH WION LIVE HERE:

EAM S Jaishankar defends India selling Russian crude as refined fuel after EU threatens crackdown

Indian External affairs minister S Jaishankar has responded to EU foreign policy chief Josep Borrell's call for action against Indian refined products from Russian crude. Jaishankar advised Borrell to refer to EU Council regulations, specifically Regulation 833/2014, which Jaishankar said recognises that Russian crude undergoes substantial transformation in a third country and is no longer treated as Russian.

Indian FM reminds EU of its own regulations, defends India's stance on Russian oil

Europe is still buying Russian oil. It is yet to sanction Russia's nuclear industry. It is also purchasing diamonds, gold, aluminium & fertilisers from Russia. Can it still preach others? Molly Gambhir reports.

Gravitas: The hypocrisy of Europe's sanction regime

The discount given by Russia to India for crude oil has decreased as China's demand for the product rockets. Quoting two Indian government officials in the know, Mint reports that the steep discounts the country enjoyed through most of FY23 have plunged due to Chinese demand and a cut at oil producers' end.&nbsp;

The Russian invasion of Ukraine, back in February 2022, sparked a slew of Western sanctions. Following this, as Moscow was left scrambling for buyers for its crude oil, India stepped up as a major buyer and managed to secure discounts of up to $15-20 a barrel. As per the Mint report, these discounts have now fallen below $10 and have even touched $5.

Also read |&nbsp;<a href="https://www.wionews.com/world/explosions-reported-throughout-ukraine-council-of-europe-says-russias-deportation-of-children-genocide-586831">Explosions reported throughout Ukraine; Council of Europe says Russia's deportation of children 'genocide'</a>

“With Russian oil finding more buyers, the discounts to Indian refiners have been coming down. Earlier, we were getting discounts that varied from cargo to cargo," one official told Mint, on the condition of anonymity.

“We used to get around $15-20 per barrel discount on Russian oil cargoes depending on what used to be the price in the spot market. That discount has become less now," said the second official.

However, recently, China, which happens to be the world's second-largest oil buyer, has become one of the top buyers of Russian oil.

As per Chinese government data, while earlier Saudi Arabia was the country's top oil supplier, Russia has taken over the position during January and February 2023.

Also read |&nbsp;<a href="https://www.wionews.com/india-news/india-tells-china-peace-along-borders-will-define-bilateral-ties-586813">India tells China peace along borders will define bilateral ties</a>

China's General Administration of Customs in March released data that showed the number of imports from Russia in January-February was 15.68 million tonnes, which is equivalent to 1.94 million barrels per day (mbpd), an increase of 23.8 per cent from 1.57 mbpd during the same period the year before.

This comes as a US-led global initiative along with G7 countries, the European Union and Australia imposed a $60 per barrel cap on Russian oil. Meanwhile, the Organization of the Petroleum Exporting Countries plus grouping (OPEC+) which includes Russia, has announced an additional 1.16 million barrels per day of supply cut. This takes effect next month.

During FY23, by providing discounts amidst the Ukraine conflict, Russia became a significant provider of oil to Indian refiners for the first time. As a result, in the 11 months leading up to February of the previous fiscal year, India imported crude oil worth $27 billion from its strategic partner, placing the Russian Federation in second place for Indian oil imports. Additionally, the discounted Russian oil aided India in satisfying the rising demand for petroleum products. India consumed 222.30 million tonnes of petroleum products&nbsp;in FY23,&nbsp;10.2 per cent more than in the previous year.

(With inputs from agencies)

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The discount given by Russia to India for crude oil has decreased as China's demand for the product rockets. Quoting two Indian government officials in the know, Mint reports that the steep discounts the country enjoyed through most of FY23 have plunged due to Chinese demand and a cut at oil producers' end.

The discount given by Russia to India for crude oil has decreased as China's demand for the product rockets. Quoting two Indian government officials in the know, Mint reports that the steep discounts the country enjoyed through most of FY23 have plunged due to Chinese demand and a cut at oil producers' end. The Russian invasion of Ukraine, back in February 2022, sparked a slew of Western sanctions. Following this, as Moscow was left scrambling for buyers for its crude oil, India stepped up as a major buyer and managed to secure discounts of up to $15-20 a barrel. As per the Mint report, these discounts have now fallen below $10 and have even touched $5. Also read | Explosions reported throughout Ukraine; Council of Europe says Russia's deportation of children 'genocide' “With Russian oil finding more buyers, the discounts to Indian refiners have been coming down. Earlier, we were getting discounts that varied from cargo to cargo," one official told Mint, on the condition of anonymity. “We used to get around $15-20 per barrel discount on Russian oil cargoes depending on what used to be the price in the spot market. That discount has become less now," said the second official. However, recently, China, which happens to be the world's second-largest oil buyer, has become one of the top buyers of Russian oil. As per Chinese government data, while earlier Saudi Arabia was the country's top oil supplier, Russia has taken over the position during January and February 2023. Also read | India tells China peace along borders will define bilateral ties China's General Administration of Customs in March released data that showed the number of imports from Russia in January-February was 15.68 million tonnes, which is equivalent to 1.94 million barrels per day (mbpd), an increase of 23.8 per cent from 1.57 mbpd during the same period the year before. This comes as a US-led global initiative along with G7 countries, the European Union and Australia imposed a $60 per barrel cap on Russian oil. Meanwhile, the Organization of the Petroleum Exporting Countries plus grouping (OPEC+) which includes Russia, has announced an additional 1.16 million barrels per day of supply cut. This takes effect next month. During FY23, by providing discounts amidst the Ukraine conflict, Russia became a significant provider of oil to Indian refiners for the first time. As a result, in the 11 months leading up to February of the previous fiscal year, India imported crude oil worth $27 billion from its strategic partner, placing the Russian Federation in second place for Indian oil imports. Additionally, the discounted Russian oil aided India in satisfying the rising demand for petroleum products. India consumed 222.30 million tonnes of petroleum products in FY23, 10.2 per cent more than in the previous year. (With inputs from agencies) WATCH WION LIVE HERE You can now write for wionews.com and be a part of the community. Share your stories and opinions with us here.

India losing 'steep discounts' on Russian crude oil due to China: Report

OPEC's share of India's oil imports fell at the fastest pace in 2022-23 to the lowest in at least 22 years, as intake of cheaper Russian oil surged and the major producers' share could shrink further this year.

OPEC's oil market share in Indian imports falls

Russia continues to enjoy strong oil trade with India and China despite the sanctions imposed by the West for its war in Ukraine. A Reuters report shows that both countries have bought a vast majority of Russian oil in April at prices above the western price cap of 60 dollars per barrel.

India, China buy Russian oil above West's cap

The West is adamant that sanctions on Russia are working. However, Russian Oil continues to make its way to reach Europe indirectly. The sanctions were imposed against Russia in response to the war of aggression against Ukraine. The importers of Russian oil and the global oil market bore the brunt of these sanctions. Nations around the world looked for an alternative. India played a key role in filling the void in the global oil market.

West using third countries as bridges to use Russian oil

Russia's oil trade with India and China is going strong amid the Ukraine war and economic sanctions by the West.&nbsp;

India and China have bought the vast majority of Russian oil in April at prices above the price cap of $60 per barrel imposed by the West, a Reuters report said.&nbsp;

The latest media reports suggest that Urals Oil -- a reference oil brand of Russia used for exports -- cargoes loaded in the first half of April were mostly heading to India's and China's ports.

According to a Reuters report, India accounted for more than 70 percent of the seaborne supplies of Urals Oil till mid-April, while China accounted for about 20 percent.

Media reports indicate that India and China -- both countries share strong bilateral relations with Russia -- have not agreed to abide by the price cap. However, the West had hoped that the threat of sanctions might deter traders from helping those countries buy oil above the price cap.

In December 2022, the group of seven (G7) nations and Australia agreed on a $60 per barrel price cap on Russian seaborne crude oil in a bid to cut Russia's oil revenues. But opponents of the price cap say that the measure is too soft to force Moscow to backtrack on its activities in Ukraine.

A G7 source told Reuters that the price cap would remain unchanged for now, despite pressure from some European Union countries, such as Poland, to lower the cap to increase pressure on Moscow.

"We recognize that as markets evolve there will be fluctuations of the discounts that Russia receives relative to global market prices. But the prices Russia receives for its oil remain well below those earned by other producers, which reflects the effects of the global sanctions regime,"&nbsp;the official told Reuters on a condition of anonymity.&nbsp;&nbsp;

Meanwhile, lower freight rates and smaller discounts for Urals Oil against global benchmarks nudged its daily price back above the price cap&nbsp;in early April.&nbsp;

Russia has been under a series of economic sanctions since it invaded Ukraine in February 2022. The sanctions by the West aim to cut off Moscow from the global financial and trade system.&nbsp;

Russia's oil trade with India and China is going strong amid the Ukraine war and economic sanctions by the West. India and China have bought the vast majority of Russian oil in April at prices above the price cap of $60 per barrel imposed by the West, a Reuters report said.

Russia's oil trade with India and China is going strong amid the Ukraine war and economic sanctions by the West. India and China have bought the vast majority of Russian oil in April at prices above the price cap of $60 per barrel imposed by the West, a Reuters report said. The latest media reports suggest that Urals Oil -- a reference oil brand of Russia used for exports -- cargoes loaded in the first half of April were mostly heading to India's and China's ports. According to a Reuters report, India accounted for more than 70 percent of the seaborne supplies of Urals Oil till mid-April, while China accounted for about 20 percent. Media reports indicate that India and China -- both countries share strong bilateral relations with Russia -- have not agreed to abide by the price cap. However, the West had hoped that the threat of sanctions might deter traders from helping those countries buy oil above the price cap. In December 2022, the group of seven (G7) nations and Australia agreed on a $60 per barrel price cap on Russian seaborne crude oil in a bid to cut Russia's oil revenues. But opponents of the price cap say that the measure is too soft to force Moscow to backtrack on its activities in Ukraine. A G7 source told Reuters that the price cap would remain unchanged for now, despite pressure from some European Union countries, such as Poland, to lower the cap to increase pressure on Moscow. "We recognize that as markets evolve there will be fluctuations of the discounts that Russia receives relative to global market prices. But the prices Russia receives for its oil remain well below those earned by other producers, which reflects the effects of the global sanctions regime," the official told Reuters on a condition of anonymity. Meanwhile, lower freight rates and smaller discounts for Urals Oil against global benchmarks nudged its daily price back above the price cap in early April. Russia has been under a series of economic sanctions since it invaded Ukraine in February 2022. The sanctions by the West aim to cut off Moscow from the global financial and trade system.

Russia's oil exports remain strong, India and China top buyers in April: Report

How fuels from Russian oil are getting backdoor entry into Europe via India

Russia said Tuesday that oil sales to India surged more than twenty-fold in 2022 amidst the Ukraine conflict. Russia's military intervention in Ukraine led European buyers to turn to other markets, but oil sales to India saw a hike, Russia's deputy prime minister said Tuesday.

"Most of our energy resources were redirected to other markets, to the markets of friendly countries. If for example, we take oil supplies to India, they increased 22 times last year," Deputy Prime Minister Alexander Novak said in comments carried by Russian news agencies.

The Ukraine war pushed European countries away from Russia. The countries sought to end their reliance on Russian energy supplies. As this happened, Russia shifted its oil exports to India and China last year.

An embargo was placed by the European Union&nbsp;on seaborne Russian oil in December. A price&nbsp;cap on Russian crude was also agreed upon with the Group of Seven industrialised powers.

This made Russia's energy imports cheaper for China and India.

Novak is in charge of Russia's energy sector and added&nbsp;that supplies to China were increasing as a "result of the great work that has been done in the industry."

Russia is&nbsp;a major producer and key ally of the OPEC oil cartel. It recently announced a cut in crude production by 500,000 barrels per day in response to the Western sanctions. The cut amounts to&nbsp;five per cent of daily production and&nbsp;would continue through June.

Meanwhile, the International Energy Agency said this month that Russia's oil-export revenue sank by almost half in February compared to last year.

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Russia said Tuesday that oil sales to India surged more than twenty-fold in 2022 amidst the Ukraine conflict. Russia's military intervention in Ukraine led European buyers to turn to other markets, but oil sales to India saw a hike, Russia's deputy prime minister said Tuesday.

Russia said Tuesday that oil sales to India surged more than twenty-fold in 2022 amidst the Ukraine conflict. Russia's military intervention in Ukraine led European buyers to turn to other markets, but oil sales to India saw a hike, Russia's deputy prime minister said Tuesday. "Most of our energy resources were redirected to other markets, to the markets of friendly countries. If for example, we take oil supplies to India, they increased 22 times last year," Deputy Prime Minister Alexander Novak said in comments carried by Russian news agencies. The Ukraine war pushed European countries away from Russia. The countries sought to end their reliance on Russian energy supplies. As this happened, Russia shifted its oil exports to India and China last year. An embargo was placed by the European Union on seaborne Russian oil in December. A price cap on Russian crude was also agreed upon with the Group of Seven industrialised powers. This made Russia's energy imports cheaper for China and India. Novak is in charge of Russia's energy sector and added that supplies to China were increasing as a "result of the great work that has been done in the industry." Russia is a major producer and key ally of the OPEC oil cartel. It recently announced a cut in crude production by 500,000 barrels per day in response to the Western sanctions. The cut amounts to five per cent of daily production and would continue through June. Meanwhile, the International Energy Agency said this month that Russia's oil-export revenue sank by almost half in February compared to last year. WATCH WION LIVE HERE You can now write for wionews.com and be a part of the community. Share your stories and opinions with us here.

Russian oil sales to India saw a 22-fold surge in 2022, Moscow says

Greece and Bulgaria on Thursday (February 16) signed deals to reduce their dependence on Russian oil and gas. Greek prime minister's office said that the Balkan neighbours will co-operate on procuring and storing natural gas. It also said that the two countries will "explore" creation of a new pipeline between the ports of Alexandroupolis and Burgas.

The agreements are "one more step towards the strategic goal of European (energy) autonomy," Greek Prime Minister Kyriakos Mitsotakis said after a meeting with visiting Bulgarian President Rumen Radev.

The president said that Greek companies would now be able to store natural gas in underground facility of Chiren while Bulgarian companies will have access to Greek terminal of Revithoussa.

"Both countries will have assured access to facilities that are critical to their energy security," Mitsotakis said.

He said the agreement "turns our two countries into crossroads for gas distribution not just from Greece to Bulgaria, but to the rest of Europe."

Both states have sped up projects to diversify away from dependence on Russian oil and gas.

Earlier in February, Bulgaria launched construction of a long-delayed gas pipeline link to neighbouring Serbia, while Greece has increased its capacity to store liquid natural gas.

Russia is a major supplier of natural gas to Europe. But ever since the Ukraine war broke out, Russia has been leveraging its position as major energy provider for political gains.

(With inputs from agencies)

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Greece and Bulgaria on Thursday (February 16) signed deals to reduce their dependence on Russian oil and gas. Greek prime minister's office said that the Balkan neighbours will co-operate on procuring and storing natural gas.

Greece and Bulgaria on Thursday (February 16) signed deals to reduce their dependence on Russian oil and gas. Greek prime minister's office said that the Balkan neighbours will co-operate on procuring and storing natural gas. It also said that the two countries will "explore" creation of a new pipeline between the ports of Alexandroupolis and Burgas. The agreements are "one more step towards the strategic goal of European (energy) autonomy," Greek Prime Minister Kyriakos Mitsotakis said after a meeting with visiting Bulgarian President Rumen Radev. The president said that Greek companies would now be able to store natural gas in underground facility of Chiren while Bulgarian companies will have access to Greek terminal of Revithoussa. "Both countries will have assured access to facilities that are critical to their energy security," Mitsotakis said. He said the agreement "turns our two countries into crossroads for gas distribution not just from Greece to Bulgaria, but to the rest of Europe." Both states have sped up projects to diversify away from dependence on Russian oil and gas. Earlier in February, Bulgaria launched construction of a long-delayed gas pipeline link to neighbouring Serbia, while Greece has increased its capacity to store liquid natural gas. Russia is a major supplier of natural gas to Europe. But ever since the Ukraine war broke out, Russia has been leveraging its position as major energy provider for political gains. (With inputs from agencies) You can now write for wionews.com and be a part of the community. Share your stories and opinions with us here. WATCH WION LIVE HERE ×

Greece and Bulgaria come together, sign energy deal to reduce dependence on Russia

India's love for cheap oil from Russia is hurting the country's rupee trade plan. Data based on figures from the trade ministry showed India's imports from Russia in the eight months leading up to November were about 16 times greater than its exports.

A Bloomberg report quoting sources showed India's push for a rupee payment mechanism is becoming futile due to the growing trade gap with Russia. The sources said Russian banks had not initiated any payments in the Indian currency yet as they do not want a pile-up of rupees.

Ajay Sahai, director general and chief executive officer of the Federation of Indian Export Organisations told Bloomberg, "as far as we know, there has been no transaction in Indian rupees so far."

That comes when India promotes rupee trade with several countries, including Sri Lanka, Bangladesh, and South Africa.

The Rupee trade mechanism began to take shape due to Russia's conflict with Ukraine, which prompted US-led sanctions and drove India to increase its purchases of inexpensive oil from Moscow to reduce its import bill in the face of rising commodity prices.

The system served as a model for creating such agreements with other countries like Sri Lanka and Mauritius.

What a slow rupee trade with Russia can do is weigh further on the Indian currency, which has already weakened the most among emerging Asian currencies over the past year.

The rupee has repeatedly breached several record lows against the dollar over the past year.

The Indian currency was changing hands at around 74 per dollar before the Ukraine crisis started late in February last year but has since fallen to multiple all-time lows, breaching the 83 per dollar level for the first time ever.

The currency has been trading in a narrow range but closer to 83 per dollar for a few months. India is relying on the internationalisation of the rupee to lower dollar demand and protect the economy from external shocks.

Last month, officials from India and Russia met to discuss methods to increase exports to Moscow in industries like electronics. That was to restart the rupee trade mechanism. But traders are considering alternative modes of payment.

<h2>Pakistan to buy Russian oil and gas, Putin calls the country a 'key partner'</h2>

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The Reserve Bank of India announced the settlement of international trade in rupees plan in July.&nbsp;But seven months since, the system is mostly restricted to payments for the import of defence equipment.

India refiners, too, prefer to pay in the United Arab Emirates dirham, which is pegged to the dollar, as payment in roubles is also difficult because there is no set rate for the Russian currency.

Reliance Industries Ltd., the largest firm in India by market value, and BPCL are two Indian refiners that use dirhams to pay for some shipments of Russian petroleum to avoid Western sanctions.

Russia has emerged as India's top crude oil supplier, overtaking Saudi Arabia and Iraq.

Even though petroleum remains the main commodity traded between the two countries, imports of goods like fertiliser and sunflower oil have increased recently.

India's imports from Russia increased by more than 400 per cent in the eight months leading up to November compared to the same period last year.

But exports decreased by 14 per cent during the same period, indicating that the government's efforts to increase outbound shipments have not been very successful.

(With inputs from agencies)

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India's love for cheap oil from Russia is hurting the country's rupee trade plan. Data based on figures from the trade ministry showed India's imports from Russia in the eight months leading up to November were about 16 times greater than its exports.

India's love for cheap oil from Russia is hurting the country's rupee trade plan. Data based on figures from the trade ministry showed India's imports from Russia in the eight months leading up to November were about 16 times greater than its exports. A Bloomberg report quoting sources showed India's push for a rupee payment mechanism is becoming futile due to the growing trade gap with Russia. The sources said Russian banks had not initiated any payments in the Indian currency yet as they do not want a pile-up of rupees. Ajay Sahai, director general and chief executive officer of the Federation of Indian Export Organisations told Bloomberg, "as far as we know, there has been no transaction in Indian rupees so far." That comes when India promotes rupee trade with several countries, including Sri Lanka, Bangladesh, and South Africa. The Rupee trade mechanism began to take shape due to Russia's conflict with Ukraine, which prompted US-led sanctions and drove India to increase its purchases of inexpensive oil from Moscow to reduce its import bill in the face of rising commodity prices. The system served as a model for creating such agreements with other countries like Sri Lanka and Mauritius. What a slow rupee trade with Russia can do is weigh further on the Indian currency, which has already weakened the most among emerging Asian currencies over the past year. The rupee has repeatedly breached several record lows against the dollar over the past year. The Indian currency was changing hands at around 74 per dollar before the Ukraine crisis started late in February last year but has since fallen to multiple all-time lows, breaching the 83 per dollar level for the first time ever. The currency has been trading in a narrow range but closer to 83 per dollar for a few months. India is relying on the internationalisation of the rupee to lower dollar demand and protect the economy from external shocks. Last month, officials from India and Russia met to discuss methods to increase exports to Moscow in industries like electronics. That was to restart the rupee trade mechanism. But traders are considering alternative modes of payment. Pakistan to buy Russian oil and gas, Putin calls the country a 'key partner' The Reserve Bank of India announced the settlement of international trade in rupees plan in July. But seven months since, the system is mostly restricted to payments for the import of defence equipment. India refiners, too, prefer to pay in the United Arab Emirates dirham, which is pegged to the dollar, as payment in roubles is also difficult because there is no set rate for the Russian currency. Reliance Industries Ltd., the largest firm in India by market value, and BPCL are two Indian refiners that use dirhams to pay for some shipments of Russian petroleum to avoid Western sanctions. Russia has emerged as India's top crude oil supplier, overtaking Saudi Arabia and Iraq. Even though petroleum remains the main commodity traded between the two countries, imports of goods like fertiliser and sunflower oil have increased recently. India's imports from Russia increased by more than 400 per cent in the eight months leading up to November compared to the same period last year. But exports decreased by 14 per cent during the same period, indicating that the government's efforts to increase outbound shipments have not been very successful. (With inputs from agencies) WATCH WION LIVE HERE

India's soaring Russian oil imports are hurting the rupee trade plan

Pakistan has announced that it will be buying cheap Russian oil to cushion the current energy crisis that emanated due to the balance of payment crisis.

Pakistan has also been unable to procure oil after the banks refused to settle letters of credit (LCs) for the import of crude and petroleum products. The country’s foreign exchange reserves have lately depleted to about $4.6 billion, barely enough to cover three weeks of imports — mostly for oil.

Russian Energy Minister Nikolay Shulginov, who is in Islamabad for the annual inter-governmental commission on trade and economy, said that they are in the final stages of the agreement and added that the oil exports will begin by end of March.

He further announced that the payments will be made in the “currencies of friendly countries," without elaborating on which currency would be used.

"We have already decided to draft an agreement to sort out all the issues that we have with regard to transportation, insurance, payments and volumes. These issues are in the final stage of the agreement," Shulginov said in a statement on Saturday.

"We have already established a timeline of this agreement by the end of March," the Russian minister added.

The development comes at a time when the Group of 7 (G7) countries are reviewing the price cap on exports of Russian oil. They are scheduled to meet in March.

Earlier in December, the Pakistani government announced that Russia had agreed to export oil to the energy-starved country at a reduced price.

In an interview to Geo News TV later in the day, Pakistani junior oil minister Musadik Malik said that the country is looking to 35 per cent of its total crude oil requirement.

"If we have dollars in excess, then we are ready to do the trade in dollars, and if there is a shortage of dollars and we have some other currency in our reserves, we are ready to trade in that.”

"All these things will be finalised in the next 60 days, so that by the end of March the oil supply starts from&nbsp;Russia."

Oil takes the lion's share of Pakistan’s import bill. Islamabad has traditionally been importing&nbsp;from Saudi Arabia and the United Arab Emirates. This is the first time they would be procuring Russian oil.

(With inputs from agencies)

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Pakistan has announced that it will be buying cheap Russian oil to cushion the current energy crisis that emanated due to the balance of payment crisis. Pakistan has also been unable to procure oil after the banks refused to settle letters of credit (LCs) for the import of crude and petroleum products.

Pakistan has announced that it will be buying cheap Russian oil to cushion the current energy crisis that emanated due to the balance of payment crisis. Pakistan has also been unable to procure oil after the banks refused to settle letters of credit (LCs) for the import of crude and petroleum products. The country’s foreign exchange reserves have lately depleted to about $4.6 billion, barely enough to cover three weeks of imports — mostly for oil. Russian Energy Minister Nikolay Shulginov, who is in Islamabad for the annual inter-governmental commission on trade and economy, said that they are in the final stages of the agreement and added that the oil exports will begin by end of March. He further announced that the payments will be made in the “currencies of friendly countries," without elaborating on which currency would be used. "We have already decided to draft an agreement to sort out all the issues that we have with regard to transportation, insurance, payments and volumes. These issues are in the final stage of the agreement," Shulginov said in a statement on Saturday. "We have already established a timeline of this agreement by the end of March," the Russian minister added. The development comes at a time when the Group of 7 (G7) countries are reviewing the price cap on exports of Russian oil. They are scheduled to meet in March. Earlier in December, the Pakistani government announced that Russia had agreed to export oil to the energy-starved country at a reduced price. In an interview to Geo News TV later in the day, Pakistani junior oil minister Musadik Malik said that the country is looking to 35 per cent of its total crude oil requirement. "If we have dollars in excess, then we are ready to do the trade in dollars, and if there is a shortage of dollars and we have some other currency in our reserves, we are ready to trade in that.” "All these things will be finalised in the next 60 days, so that by the end of March the oil supply starts from Russia." Oil takes the lion's share of Pakistan’s import bill. Islamabad has traditionally been importing from Saudi Arabia and the United Arab Emirates. This is the first time they would be procuring Russian oil. (With inputs from agencies) WATCH WION LIVE HERE:

Pakistan to import cheap Russian oil, deal in ‘final stages’

Russian President Vladimir Putin has threatened to stop oil sale to the countries agreeing to the West-led decision to impose a price cap, adding that it will reduce oil production.&nbsp;The remarks came in response to the move of the Group of Seven, European Union and Australia to impose a price limit on Russian oil of $60 per barrel in a bid to weaken Kremlin’s ability to finance its war in Ukraine. The price cap&nbsp;came into effect on Monday.

“I have already said that we simply will not sell to those countries that make such decisions,” Putin said on Friday after a regional summit in Kyrgyzstan’s capital, Bishkek.

<h2>Russian President Putin attends Eurasian Economic Council, talks to focus on energy and trade</h2>

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“We will consider a possible reduction in production if necessary,” he added, calling the price cap a “stupid decision” that is “harmful to global energy markets”.

The Russian leader added that Moscow will announce retaliatory steps “in the next few days”, but did not elaborate further.

Currently, the market price of a barrel of Russian Urals crude is hovering around $65 dollars, just slightly above the cap agreed.

<h2>Putin hints at ending war in Ukraine</h2>

After the summit, Putin also talked about the possibility of ending the war in Ukraine, adding that Russia is looking for a settlement with its neighbour.

“The settlement process as a whole, yes, it will probably be difficult and will take some time. But one way or another, all participants in this process will have to agree with the realities that are taking shape on the ground,” he said.

Also read |&nbsp;<a href="https://www.wionews.com/world/vladimir-putin-toys-with-idea-of-pre-emptive-nuclear-strike-541732">Vladimir Putin toys with idea of 'pre-emptive' nuclear strike</a>

Putin’s statement came just days after the 70-year-old hinted at a protracted war in Ukraine, saying that his military operation could be a “long-term process”.&nbsp;

Also Read |&nbsp;<a href="https://www.wionews.com/world/russia-open-to-more-prisoner-exchanges-with-united-states-says-vladimir-putin-541671">Russia open to more prisoner exchanges with United States, says Vladimir Putin</a>

He further said that his military operation was going as per the plan.

“Everything is stable. There are no questions or problems there,” he said.

(With inputs from agencies)

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Russian President Vladimir Putin has threatened to stop oil sale to the countries agreeing to the West-led decision to impose a price cap, adding that it will reduce oil production.

Russian President Vladimir Putin has threatened to stop oil sale to the countries agreeing to the West-led decision to impose a price cap, adding that it will reduce oil production. The remarks came in response to the move of the Group of Seven, European Union and Australia to impose a price limit on Russian oil of $60 per barrel in a bid to weaken Kremlin’s ability to finance its war in Ukraine. The price cap came into effect on Monday. “I have already said that we simply will not sell to those countries that make such decisions,” Putin said on Friday after a regional summit in Kyrgyzstan’s capital, Bishkek. Russian President Putin attends Eurasian Economic Council, talks to focus on energy and trade “We will consider a possible reduction in production if necessary,” he added, calling the price cap a “stupid decision” that is “harmful to global energy markets”. The Russian leader added that Moscow will announce retaliatory steps “in the next few days”, but did not elaborate further. Currently, the market price of a barrel of Russian Urals crude is hovering around $65 dollars, just slightly above the cap agreed. Putin hints at ending war in Ukraine After the summit, Putin also talked about the possibility of ending the war in Ukraine, adding that Russia is looking for a settlement with its neighbour. “The settlement process as a whole, yes, it will probably be difficult and will take some time. But one way or another, all participants in this process will have to agree with the realities that are taking shape on the ground,” he said. Also read | Vladimir Putin toys with idea of 'pre-emptive' nuclear strike Putin’s statement came just days after the 70-year-old hinted at a protracted war in Ukraine, saying that his military operation could be a “long-term process”. Also Read | Russia open to more prisoner exchanges with United States, says Vladimir Putin He further said that his military operation was going as per the plan. “Everything is stable. There are no questions or problems there,” he said. (With inputs from agencies) WATCH WION LIVE HERE:

Putin threatens to cut oil production over price cap, stop sale to nations insisting on ceiling

External Affairs Minister S Jaishankar said that Indian foreign policy was to serve the Indian people and he will do whatever it takes to discharge that responsibility. On purchasing Russian oil, he said the policy is to go where we get the best deal in the interest of the Indian people.

WION Dispatch: EAM Jaishankar defends India's stance on Russian oil in Parliament

Oil futures were little changed in Asia on Wednesday as hopes of improved Chinese demand offset uncertainty about how a Western cap on Russian oil prices would play out, keeping markets on edge after a sharp fall in the previous session.&nbsp;

Brent crude futures edged up 3 cents, or 0.04 per cent, to $79.38 a barrel by 0717 GMT, after they fell below $80 for the second time in 2022 during the previous trading session.

US&nbsp;crude futures mostly traded sideways and were down 9 cents or 0.12 per cent to $74.16 a barrel.

Watch |&nbsp;Gravitas: OPEC thwarting the West's plans?

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Brent's slump on Tuesday was the largest daily decline since late September, which has traded in a $62 range this year.

Expectations of rising demand in China continued to be a positive driver, as the country posted fewer new COVID-19 infections for the second consecutive day and announced sweeping changes in its tough anti-virus policy.

China's national health authority said on Wednesday that asymptomatic <a href="https://www.wionews.com/topics/coronavirus">COVID-19</a> cases and those with mild symptoms can quarantine at home, in the strongest sign so far that China is preparing its people to live with the disease.

"China has (been) rapidly eased COVID-19 restrictions, which may boost demand," markets analyst Leon Li at CMC Markets said in a note.

Also read |&nbsp;<a href="https://www.wionews.com/world/moscow-says-will-not-accept-western-price-cap-on-its-crude-claims-russian-oil-will-continue-to-be-in-demand-540030">Moscow says will not accept western price cap on its crude, claims 'Russian oil will continue to be in demand'</a>

The reopening could see a 1 per cent boost to global oil demand, ANZ said in a client note.

Data earlier on Wednesday showed China's crude oil imports in November rose 12 per cent from a year earlier to the&nbsp;highest in 10 months, as companies replenished stocks with cheaper oil and as new plants started up.

A potential drawdown in US&nbsp;crude stockpiles of around 6.4 million barrels, according to API figures, also gave some sentiment support on the supply front.

However, uncertainty on how the price cap on Russian oil would impact supply contributed to volatility. Russia is considering three options, including banning oil sales to some countries and setting maximum discounts at which it would sell its crude, to counter the price cap imposed by Western powers, the Vedomosti daily reported on Wednesday.

"There's still tons of uncertainty in the markets today," said Claudio Galimberti, senior vice president at Rystad Energy, adding crude production in Russia may not drop as much as expected earlier.

Also read |&nbsp;<a href="https://www.wionews.com/world/oil-price-cap-will-not-affect-russian-military-operation-in-ukraine-540193">Oil price cap 'will not affect' Russian military operation in Ukraine</a>

Some weakness was attributed to a stronger greenback after it firmed from the earlier session and cautious activity in Asian stock markets.

Wall Street benchmarks also tumbled on Tuesday on uncertainty around the direction of Federal Reserve rate hikes and further talk of a looming recession.&nbsp;Those fears were sparked by strong economic data or hawkish signals from other policymakers.

Oil prices have dropped by more than 1 per cent for three straight sessions, giving up most of their gains for the year.

Some optimism remained that buyers could come back if the market bottoms out amid a contango price structure, where forward prices are higher than prompt prices.

"Energy traders are not confidently buying dips, but they will if the current selloff sends (US&nbsp;crude) prices close to the levels the Biden administration might refill the SPR, which is in the $70 region," a senior market analyst at OANDA Edward Moya said in a client note, referring to the US&nbsp;Strategic Petroleum Reserve.

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Oil futures were little changed in Asia on Wednesday as hopes of improved Chinese demand offset uncertainty about how a Western cap on Russian oil prices would play out, keeping markets on edge after a sharp fall in the previous session.

Oil futures were little changed in Asia on Wednesday as hopes of improved Chinese demand offset uncertainty about how a Western cap on Russian oil prices would play out, keeping markets on edge after a sharp fall in the previous session. Brent crude futures edged up 3 cents, or 0.04 per cent, to $79.38 a barrel by 0717 GMT, after they fell below $80 for the second time in 2022 during the previous trading session. US crude futures mostly traded sideways and were down 9 cents or 0.12 per cent to $74.16 a barrel. Watch | Gravitas: OPEC thwarting the West's plans? Brent's slump on Tuesday was the largest daily decline since late September, which has traded in a $62 range this year. Expectations of rising demand in China continued to be a positive driver, as the country posted fewer new COVID-19 infections for the second consecutive day and announced sweeping changes in its tough anti-virus policy. China's national health authority said on Wednesday that asymptomatic COVID-19 cases and those with mild symptoms can quarantine at home, in the strongest sign so far that China is preparing its people to live with the disease. "China has (been) rapidly eased COVID-19 restrictions, which may boost demand," markets analyst Leon Li at CMC Markets said in a note. Also read | Moscow says will not accept western price cap on its crude, claims 'Russian oil will continue to be in demand' The reopening could see a 1 per cent boost to global oil demand, ANZ said in a client note. Data earlier on Wednesday showed China's crude oil imports in November rose 12 per cent from a year earlier to the highest in 10 months, as companies replenished stocks with cheaper oil and as new plants started up. A potential drawdown in US crude stockpiles of around 6.4 million barrels, according to API figures, also gave some sentiment support on the supply front. However, uncertainty on how the price cap on Russian oil would impact supply contributed to volatility. Russia is considering three options, including banning oil sales to some countries and setting maximum discounts at which it would sell its crude, to counter the price cap imposed by Western powers, the Vedomosti daily reported on Wednesday. "There's still tons of uncertainty in the markets today," said Claudio Galimberti, senior vice president at Rystad Energy, adding crude production in Russia may not drop as much as expected earlier. Also read | Oil price cap 'will not affect' Russian military operation in Ukraine Some weakness was attributed to a stronger greenback after it firmed from the earlier session and cautious activity in Asian stock markets. Wall Street benchmarks also tumbled on Tuesday on uncertainty around the direction of Federal Reserve rate hikes and further talk of a looming recession. Those fears were sparked by strong economic data or hawkish signals from other policymakers. Oil prices have dropped by more than 1 per cent for three straight sessions, giving up most of their gains for the year. Some optimism remained that buyers could come back if the market bottoms out amid a contango price structure, where forward prices are higher than prompt prices. "Energy traders are not confidently buying dips, but they will if the current selloff sends (US crude) prices close to the levels the Biden administration might refill the SPR, which is in the $70 region," a senior market analyst at OANDA Edward Moya said in a client note, referring to the US Strategic Petroleum Reserve. WATCH WION LIVE HERE You can now write for wionews.com and be a part of the community. Share your stories and opinions with us here.

Oil steadies after fall as China demand revival hopes offset Russia price cap uncertainty

Russia has denounced the West's price cap on its oil and said it "will not accept" it. The Kremlin also reportedly said that it was analysing how to respond.

Kremlin spokesperson Dmitry Peskov as per a report by the Russian news agency TASS said that his country has made preparations for the price cap that goes into effect on Monday (December 5th).

AFP reports that this price cap agreed by the EU, G7 and Australia will go into effect on Monday alongside an EU embargo on maritime deliveries of Russian crude oil. Under the cap, Russia can only continue delivery of oil sold at $60 per barrel or less.

Watch |&nbsp;Russia denounces oil price cap agreed by EU, G7; Zelensky says 'price cap on Moscow not serious'

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Peskov said "We will not accept this cap," adding that Moscow will conduct a rapid analysis of the agreement and respond.

Russia has insisted that it will stop oil supplies to nations that have participated in the price cap. Mikhail Ulyanov, Moscow's ambassador to international organisations in Vienna, also confirmed this stance in social media posts.

Also read |&nbsp;<a href="https://www.wionews.com/world/zelensky-says-60-price-cap-on-russian-oil-is-not-serious-as-it-is-quite-comfortable-for-moscow-539969">Zelensky says $60 price cap on Russian oil is ‘not serious’, won’t push Moscow into ending war</a>

"Starting from this year Europe will live without Russian oil," he said in one post, in another he claimed that Deputy Prime Minister of Russia Alexander Novak too has confirmed that Moscow will cut supplies to countries supporting the price cap.

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Starting from this year <a href="https://twitter.com/hashtag/Europe?src=hash&amp;ref_src=twsrc%5Etfw">#Europe</a> will live w/o Russian oil. <a href="https://twitter.com/hashtag/Moscow?src=hash&amp;ref_src=twsrc%5Etfw">#Moscow</a> has already made it clear that it will NOT supply <a href="https://twitter.com/hashtag/oil?src=hash&amp;ref_src=twsrc%5Etfw">#oil</a> to those countries who support anti-market price cap. Very soon the <a href="https://twitter.com/hashtag/EU?src=hash&amp;ref_src=twsrc%5Etfw">#EU</a> will blame <a href="https://twitter.com/hashtag/Russia?src=hash&amp;ref_src=twsrc%5Etfw">#Russia</a> for using oil as a weapon.
— Mikhail Ulyanov (@Amb_Ulyanov) <a href="https://twitter.com/Amb_Ulyanov/status/1599025369272979456?ref_src=twsrc%5Etfw">December 3, 2022</a></blockquote>
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Deputy Prime Minister of Russia A.Novak confirmed today that Moscow would not supply oil to countries supporting price cap.They can make politically motivated anti-market decisions putting at risk stability of the oil market, Russia has the right to react accordingly.
— Mikhail Ulyanov (@Amb_Ulyanov) <a href="https://twitter.com/Amb_Ulyanov/status/1599435772699893763?ref_src=twsrc%5Etfw">December 4, 2022</a></blockquote>
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Reuters reports that as per US Treasury Secretary Janet Yellen the price cap will be particularly beneficial to low and medium-income countries and would "cut into" the Russian President's most important source of revenue.

"With Russia's economy already contracting and its budget increasingly stretched thin, the price cap will immediately cut into (President Vladimir) Putin’s most important source of revenue."

Also read |&nbsp;<a href="https://www.wionews.com/world/opec-agrees-to-stick-to-its-oil-output-targets-amid-market-uncertainties-539992">OPEC+ agrees to stick to its oil output targets amid market uncertainties, energy crisis</a>

On Friday, Russian Urals crude was traded at approximately $67/barrel.

Russia's embassy in the United States criticised the cap and called the move "dangerous", adding that in spite of it Moscow is "confident" it will find buyers for its oil.

"Steps like these will inevitably result in increasing uncertainty and imposing higher costs for raw materials' consumers," it said."Regardless of the current flirtations with the dangerous and illegitimate instrument, we are confident that Russian oil will continue to be in demand."

(With inputs from agencies)

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Russia has denounced the West's price cap on its oil and said it "will not accept" it. The Kremlin also reportedly said that it was analysing how to respond. Kremlin spokesperson Dmitry Peskov as per a report by the Russian news agency TASS said that his country has made preparations for the price cap that goes into effect on Monday (December 5th).

Russia has denounced the West's price cap on its oil and said it "will not accept" it. The Kremlin also reportedly said that it was analysing how to respond. Kremlin spokesperson Dmitry Peskov as per a report by the Russian news agency TASS said that his country has made preparations for the price cap that goes into effect on Monday (December 5th). AFP reports that this price cap agreed by the EU, G7 and Australia will go into effect on Monday alongside an EU embargo on maritime deliveries of Russian crude oil. Under the cap, Russia can only continue delivery of oil sold at $60 per barrel or less. Watch | Russia denounces oil price cap agreed by EU, G7; Zelensky says 'price cap on Moscow not serious' Peskov said "We will not accept this cap," adding that Moscow will conduct a rapid analysis of the agreement and respond. Russia has insisted that it will stop oil supplies to nations that have participated in the price cap. Mikhail Ulyanov, Moscow's ambassador to international organisations in Vienna, also confirmed this stance in social media posts. Also read | Zelensky says $60 price cap on Russian oil is ‘not serious’, won’t push Moscow into ending war "Starting from this year Europe will live without Russian oil," he said in one post, in another he claimed that Deputy Prime Minister of Russia Alexander Novak too has confirmed that Moscow will cut supplies to countries supporting the price cap. Starting from this year #Europe will live w/o Russian oil. #Moscow has already made it clear that it will NOT supply #oil to those countries who support anti-market price cap. Very soon the #EU will blame #Russia for using oil as a weapon. — Mikhail Ulyanov (@Amb_Ulyanov) December 3, 2022 × Deputy Prime Minister of Russia A.Novak confirmed today that Moscow would not supply oil to countries supporting price cap.They can make politically motivated anti-market decisions putting at risk stability of the oil market, Russia has the right to react accordingly. — Mikhail Ulyanov (@Amb_Ulyanov) December 4, 2022 × Reuters reports that as per US Treasury Secretary Janet Yellen the price cap will be particularly beneficial to low and medium-income countries and would "cut into" the Russian President's most important source of revenue. "With Russia's economy already contracting and its budget increasingly stretched thin, the price cap will immediately cut into (President Vladimir) Putin’s most important source of revenue." Also read | OPEC+ agrees to stick to its oil output targets amid market uncertainties, energy crisis On Friday, Russian Urals crude was traded at approximately $67/barrel. Russia's embassy in the United States criticised the cap and called the move "dangerous", adding that in spite of it Moscow is "confident" it will find buyers for its oil. "Steps like these will inevitably result in increasing uncertainty and imposing higher costs for raw materials' consumers," it said."Regardless of the current flirtations with the dangerous and illegitimate instrument, we are confident that Russian oil will continue to be in demand." (With inputs from agencies) WATCH WION LIVE HERE You can now write for wionews.com and be a part of the community. Share your stories and opinions with us here.

Moscow says will not accept western price cap on its crude, claims 'Russian oil will continue to be in demand'

Following European Union, the Group of Seven (G7) nations and Australia on Friday (December 2) also agreed to the USD 60 per barrel price cap on Russian seaborne crude oil. Earlier in the day, the European Union member states had hammered out a political agreement over price cap overcoming Poland's hesitancy.&nbsp;The price cap will make it very difficult for Russia to sell its oil for a higher price since the most important shipping and insurance firms are based in G7 countries. 
 
The price cap by G&amp; coalition will allow non-EU countries to keep importing seaborne Russian crude oil, but it will prohibit shipping, insurance and re-insurance companies from handling cargoes of Russian crude around the globe, unless it is sold for less than the price cap. 
 
The EU had agreed to the price cap&nbsp;after holdout Poland also came in its support, paving the way for formal approval over the weekend.

The G7 and Australia said in a statement that the price cap would take effect on Dec. 5 or very soon thereafter.

Watch | War in Ukraine: $60 per barrel price cap agreed on Russian crude oil

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The nations said they anticipated that any revision of the price would include a form of grandfathering to allow compliant transactions concluded before the change.

"The Price Cap Coalition may also consider further action to ensure the effectiveness of the price cap," the statement read. No details were immediately available on what further actions could be taken.

The price cap aims to limit Russia's ability to raise income through its energy assets to fund its ongoing war efforts in Ukraine.

Also Read | <a href="https://www.wionews.com/world/us-remains-ready-to-meet-russia-over-new-start-nuclear-treaty-talks-says-official-539606">US remains ready to meet Russia over 'New Start' nuclear treaty talks, says official</a><a href="https://www.wionews.com/world/us-remains-ready-to-meet-russia-over-new-start-nuclear-treaty-talks-says-official-539606">&nbsp;</a>

Warsaw had resisted the proposed level as it examined an adjustment mechanism to keep the cap below the market price. It had pushed in EU negotiations for the cap to be as low as possible to squeeze revenues to Russia and limit Moscow's ability to finance its war in Ukraine.

Polish Ambassador to the EU, Andrzej Sados, on Friday told reporters Poland had backed the EU deal, which included a mechanism to keep the oil price cap at least 5 per cent&nbsp;below the market rate. U.S. officials said the deal was unprecedented and demonstrated the resolve of the coalition opposing Russia's war.

Details of the deal are due to be published in the EU legal journal on Sunday.

(With inputs from agencies)

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&nbsp;

Following European Union, the Group of Seven (G7) nations and Australia on Friday (December 2) also agreed to the USD 60 per barrel price cap on Russian seaborne crude oil.

Following European Union, the Group of Seven (G7) nations and Australia on Friday (December 2) also agreed to the USD 60 per barrel price cap on Russian seaborne crude oil. Earlier in the day, the European Union member states had hammered out a political agreement over price cap overcoming Poland's hesitancy. The price cap will make it very difficult for Russia to sell its oil for a higher price since the most important shipping and insurance firms are based in G7 countries. The price cap by G& coalition will allow non-EU countries to keep importing seaborne Russian crude oil, but it will prohibit shipping, insurance and re-insurance companies from handling cargoes of Russian crude around the globe, unless it is sold for less than the price cap. The EU had agreed to the price cap after holdout Poland also came in its support, paving the way for formal approval over the weekend. The G7 and Australia said in a statement that the price cap would take effect on Dec. 5 or very soon thereafter. Watch | War in Ukraine: $60 per barrel price cap agreed on Russian crude oil × The nations said they anticipated that any revision of the price would include a form of grandfathering to allow compliant transactions concluded before the change. "The Price Cap Coalition may also consider further action to ensure the effectiveness of the price cap," the statement read. No details were immediately available on what further actions could be taken. The price cap aims to limit Russia's ability to raise income through its energy assets to fund its ongoing war efforts in Ukraine. Also Read | US remains ready to meet Russia over 'New Start' nuclear treaty talks, says official Warsaw had resisted the proposed level as it examined an adjustment mechanism to keep the cap below the market price. It had pushed in EU negotiations for the cap to be as low as possible to squeeze revenues to Russia and limit Moscow's ability to finance its war in Ukraine. Polish Ambassador to the EU, Andrzej Sados, on Friday told reporters Poland had backed the EU deal, which included a mechanism to keep the oil price cap at least 5 per cent below the market rate. U.S. officials said the deal was unprecedented and demonstrated the resolve of the coalition opposing Russia's war. Details of the deal are due to be published in the EU legal journal on Sunday. (With inputs from agencies) You can now write for wionews.com and be a part of the community. Share your stories and opinions with us here. WATCH WION LIVE HERE ×

G7 and Australia follow EU, agree to $60 a barrel price cap on Russian crude oil

The European Union member states have agreed to put a price cap of $60 a barrel on Russian oil, AFP reported on Friday. The countries decided to follow the lead of the G7 economies who imposed a limit on Russian oil in a bid to hamper the revenues earned by the Kremlin. While the EU has already imposed multiple sanctions on Russia, they have not stopped the imports completely.

Also read |&nbsp;<a href="https://www.wionews.com/world/who-pleased-to-see-china-ease-zero-covid-restrictions-amid-massive-protests-539548">WHO 'pleased' to see China ease zero-Covid restrictions amid massive protests</a>

According to the agreement, the price cap will be reviewed to maintain it in accordance with the market fluctuations and special attention will be paid to ensure that it is “at least 5% below the average market price. While nearly all the members agreed on the oil price cap, Poland remained skeptical of the terms, but the government finally gave its nod keeping the adjustments in mind.

Earlier, Russia said that the price cap will hurt its economy and it will result in higher inflation. While countries like China and India continue to deal with Russia when it comes to oil and natural gas, the loss of the European market has come as a major blow to the struggling Russian economy.

Also read |&nbsp;<a href="https://www.wionews.com/world/russia-rejects-joe-bidens-terms-for-ukraine-talks-says-offensive-will-continue-539410">Russia rejects Biden's terms for Ukraine talks, says offensive will continue</a>

The main objective behind the oil price cap is to cut finance to the Russian government who are currently involved in the invasion of Ukraine. Russia has already cut its supply to most European nations and the prevalent energy crisis is predicted to get worse with the price cap.

The EU also said that it will need the cooperation of all G7 nations to put pressure on Russia, but it remains to be seen how China and India will react to the price cap.

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The European Union member states have agreed to put a price cap of $60 a barrel on Russian oil, AFP reported on Friday. The countries decided to follow the lead of the G7 economies who imposed a limit on Russian oil in a bid to hamper the revenues earned by the Kremlin.

The European Union member states have agreed to put a price cap of $60 a barrel on Russian oil, AFP reported on Friday. The countries decided to follow the lead of the G7 economies who imposed a limit on Russian oil in a bid to hamper the revenues earned by the Kremlin. While the EU has already imposed multiple sanctions on Russia, they have not stopped the imports completely. Also read | WHO 'pleased' to see China ease zero-Covid restrictions amid massive protests According to the agreement, the price cap will be reviewed to maintain it in accordance with the market fluctuations and special attention will be paid to ensure that it is “at least 5% below the average market price. While nearly all the members agreed on the oil price cap, Poland remained skeptical of the terms, but the government finally gave its nod keeping the adjustments in mind. Earlier, Russia said that the price cap will hurt its economy and it will result in higher inflation. While countries like China and India continue to deal with Russia when it comes to oil and natural gas, the loss of the European market has come as a major blow to the struggling Russian economy. Also read | Russia rejects Biden's terms for Ukraine talks, says offensive will continue The main objective behind the oil price cap is to cut finance to the Russian government who are currently involved in the invasion of Ukraine. Russia has already cut its supply to most European nations and the prevalent energy crisis is predicted to get worse with the price cap. The EU also said that it will need the cooperation of all G7 nations to put pressure on Russia, but it remains to be seen how China and India will react to the price cap.

European Union tentatively agrees on $60-per-barrel price cap on Russian oil

Russia on Wednesday hit out at European Union and larger western efforts to introduce a cap on the price of the Russian oil. The Russian foreign ministry said that the country will not supply oil to countries imposing a price cap.&nbsp;

Russian foreign ministry added that the proposal was an "anti-market" one and it would disrupt supply chains and worsen the situation on global energy markets.&nbsp;

"We have repeatedly said that the introduction of the so-called ceiling on Russian oil prices is not just a non-market mechanism, it is an anti-market measure," Russian foreign ministry spokeswoman Maria Zakharova said.

"Russia will not supply oil to countries that back this anti-Russian confrontational initiative. It is anti-Russian, but the repercussions will be disastrous for everyone," Zakharova added, reiterating what Russian Deputy Prime Minister Alexander Novak had asserted earlier.&nbsp;

ALSO READ -&nbsp;<a href="https://www.wionews.com/world/avoid-division-impose-price-cap-on-russian-oil-zelensky-to-europe-537395">Avoid division in ranks, impose price cap on Russian oil: Zelensky to Europe</a>

Earlier, Russian Deputy Prime Minister Alexander Novak had said that Russia will not supply oil to countries under the terms of the price cap, even if it would be more profitable. "This is generally unacceptable from the point of view of concluding contracts. We will work according to the market (conditions)," he had said.&nbsp;

WATCH -&nbsp;G7: <a href="https://www.wionews.com/videos/g7-price-cap-per-barrel-under-discussion-to-be-introduced-in-december-512601">Price cap per barrel under discussion, to be introduced in December</a>

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The G7 finance ministers have stated their intention to impose a price cap on Russian oil.

The price cap ruling is likely to go into effect on December 5, Russian news agency TASS reported.&nbsp;

Last week, the European Commission recommended capping Russian oil prices at $65-70 per barrel, which Poland and the Baltic countries opposed. Greece, Cyprus, and Malta, all of which rely on tanker traffic, want a bigger cap or some type of compensation.

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Russia on Wednesday hit out at European Union and larger western efforts to introduce a cap on the price of the Russian oil. The Russian foreign ministry said that the country will not supply oil to countries imposing a price cap.

Russia on Wednesday hit out at European Union and larger western efforts to introduce a cap on the price of the Russian oil. The Russian foreign ministry said that the country will not supply oil to countries imposing a price cap. Russian foreign ministry added that the proposal was an "anti-market" one and it would disrupt supply chains and worsen the situation on global energy markets. "We have repeatedly said that the introduction of the so-called ceiling on Russian oil prices is not just a non-market mechanism, it is an anti-market measure," Russian foreign ministry spokeswoman Maria Zakharova said. "Russia will not supply oil to countries that back this anti-Russian confrontational initiative. It is anti-Russian, but the repercussions will be disastrous for everyone," Zakharova added, reiterating what Russian Deputy Prime Minister Alexander Novak had asserted earlier. ALSO READ - Avoid division in ranks, impose price cap on Russian oil: Zelensky to Europe Earlier, Russian Deputy Prime Minister Alexander Novak had said that Russia will not supply oil to countries under the terms of the price cap, even if it would be more profitable. "This is generally unacceptable from the point of view of concluding contracts. We will work according to the market (conditions)," he had said. WATCH - G7: Price cap per barrel under discussion, to be introduced in December × The G7 finance ministers have stated their intention to impose a price cap on Russian oil. The price cap ruling is likely to go into effect on December 5, Russian news agency TASS reported. Last week, the European Commission recommended capping Russian oil prices at $65-70 per barrel, which Poland and the Baltic countries opposed. Greece, Cyprus, and Malta, all of which rely on tanker traffic, want a bigger cap or some type of compensation. WATCH WION LIVE HERE You can now write for wionews.com and be a part of the community. Share your stories and opinions with us here.

Oil price cap proposal: Russia warns West of dire repercussions

Ukraine President Volodymyr Zelensky on Friday appealed Europeans to stay united to severely limit price for Russian oil.&nbsp;"There is no split, there is no schism among Europeans and we have to preserve this. This is our mission number one this year," Zelensky said in an address via a live video link to a conference in Lithuania.

Russia is a major supplier of oil and natural gas to Europe. It has leveraged this position to exert political pressure in order to retaliate against economic sanctions the West has chosen to impose in the aftermath of its Ukraine invasion. Setting a price cap on Russian oil has been seen as one of the measure that would limit Russia's ability to raise money for its war effort.

"Europe is helping itself. It's not helping Ukraine to stand against Russia, this is helping Europe to stand against Russian aggression,"&nbsp;he added.

Ukraine's energy grid has been badly battered due to Russian shelling. Much of the Ukraine is without heat or power as winter begins to make the mercury drop.

European Union governments remained split on Thursday over what level to cap Russian oil prices at to curb Moscow's ability to pay for the war, and Zelensky called on the EU leaders to settle on the lowest proposal of $30.

"The price cuts are very important. We hear about (proposals to set the cap per barrel at) $60 or $70. Such words sound more like a concession (to Russia),"&nbsp;Zelesnky said.

"But I'm very grateful to our Baltic and Polish colleagues for their proposals, quite reasonable ones, to set this cap at $30 per barrel. It's a much better idea", he added.

The EU states failed to reach a deal on the price cap for Russian sea-borne oil on Wednesday&nbsp;because Group of Seven nations (G7) proposal for a cap of $65-70 per barrel was seen as far too high by some and too low by others.

(With inputs from agencies)

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Ukraine President Volodymyr Zelensky on Friday appealed Europeans to stay united to severely limit price for Russian oil. "There is no split, there is no schism among Europeans and we have to preserve this.

Ukraine President Volodymyr Zelensky on Friday appealed Europeans to stay united to severely limit price for Russian oil. "There is no split, there is no schism among Europeans and we have to preserve this. This is our mission number one this year," Zelensky said in an address via a live video link to a conference in Lithuania. Russia is a major supplier of oil and natural gas to Europe. It has leveraged this position to exert political pressure in order to retaliate against economic sanctions the West has chosen to impose in the aftermath of its Ukraine invasion. Setting a price cap on Russian oil has been seen as one of the measure that would limit Russia's ability to raise money for its war effort. "Europe is helping itself. It's not helping Ukraine to stand against Russia, this is helping Europe to stand against Russian aggression," he added. Ukraine's energy grid has been badly battered due to Russian shelling. Much of the Ukraine is without heat or power as winter begins to make the mercury drop. European Union governments remained split on Thursday over what level to cap Russian oil prices at to curb Moscow's ability to pay for the war, and Zelensky called on the EU leaders to settle on the lowest proposal of $30. "The price cuts are very important. We hear about (proposals to set the cap per barrel at) $60 or $70. Such words sound more like a concession (to Russia)," Zelesnky said. "But I'm very grateful to our Baltic and Polish colleagues for their proposals, quite reasonable ones, to set this cap at $30 per barrel. It's a much better idea", he added. The EU states failed to reach a deal on the price cap for Russian sea-borne oil on Wednesday because Group of Seven nations (G7) proposal for a cap of $65-70 per barrel was seen as far too high by some and too low by others. (With inputs from agencies) You can now write for wionews.com and be a part of the community. Share your stories and opinions with us here. WATCH WION LIVE HERE ×

Avoid division in ranks, impose price cap on Russian oil: Zelensky to Europe

U.S. issued several warnings to India against the import of Russian oil, saying it was not in India's interest. India continued its energy imports from Russia and now U.S. has started taking a softer stance towards India. U.S. has now taken several opportunities to exclaim how it wishes to be India's 'best defence partner'. But why? Is Russia getting something from India that U.S. wants? Here’s a report by Shivan Chanana.

Why U.S. and Russia are playing tug-of-war to get India on their side

The US Treasury Secretary Janet Yellen stated on Friday that India can continue to buy as much Russian oil as it wants, including at rates above the&nbsp;G7-imposed price cap as long as it avoids Western insurance, finance, and maritime services bound by the cap.&nbsp;

In an interview with Reuters on the sidelines of the US–India business and investment opportunities event in New Delhi, Yellen said despite India's oil purchases from Russia the G7 price cap, which is intended to cut Russia's revenue will&nbsp;still work and bring down global oil prices.&nbsp;

ALSO READ |&nbsp;<a href="https://www.wionews.com/india-news/our-purchases-for-the-month-would-be-less-than-what-europe-does-in-an-afternoon-jaishankar-on-russian-oil-470374">Our purchases for the month would be less than what Europe does in an afternoon: Jaishankar on Russian oil</a>

"Russia is going to find it very difficult to continue shipping as much oil as they have done when the EU stops buying Russian oil," Yellen told Reuters. "They're going to be heavily in search of buyers. And many buyers are reliant on Western services."

The Treasury Secretary also highlighted that Russian oil "is going to be selling at bargain prices and we're happy to have India get that bargain or Africa or China. It's fine."

Over purchase of Russian oil by India and private Indian oil companies, Yellen said they "can also purchase oil at any price they want as long as they don't use these Western services and they find other services."

ALSO READ |&nbsp;<a href="https://www.wionews.com/india/buying-russian-gas-is-not-funding-the-war-says-jaishankar-484836">Buying Russian gas is not funding the war, says Jaishankar</a>

During the event, she termed India as one of the trusted trading partners of US. "In a world where supply chain vulnerabilities can impose heavy costs, we believe it’s important to strengthen our trade ties with India and the large number of countries that share our approach to economic relations," she remarked&nbsp;at the event.&nbsp;

She said that the recent disruptions caused by the pandemic and Russia’s war on Ukraine are reasons to further deepen India-US economic ties.

WATCH |&nbsp;&nbsp;<a href="https://www.wionews.com/videos/us-treasury-secretary-janet-yellen-meets-indias-finance-minister-nirmala-sitharaman-533263">US' Treasury Secretary Janet Yellen meets India's Finance Minister Nirmala Sitharaman</a>

India's External Affairs Minister S Jaishankar, has on various national and international platforms earlier,&nbsp;explained India's oil purchases from Russia where he made clear that India will do what is the best for the nation.&nbsp;

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The US Treasury Secretary Janet Yellen stated on Friday that India can continue to buy as much Russian oil as it wants, including at rates above the G7-imposed price cap as long as it avoids Western insurance, finance, and maritime services bound by the cap.

The US Treasury Secretary Janet Yellen stated on Friday that India can continue to buy as much Russian oil as it wants, including at rates above the G7-imposed price cap as long as it avoids Western insurance, finance, and maritime services bound by the cap. In an interview with Reuters on the sidelines of the US–India business and investment opportunities event in New Delhi, Yellen said despite India's oil purchases from Russia the G7 price cap, which is intended to cut Russia's revenue will still work and bring down global oil prices. ALSO READ | Our purchases for the month would be less than what Europe does in an afternoon: Jaishankar on Russian oil "Russia is going to find it very difficult to continue shipping as much oil as they have done when the EU stops buying Russian oil," Yellen told Reuters. "They're going to be heavily in search of buyers. And many buyers are reliant on Western services." The Treasury Secretary also highlighted that Russian oil "is going to be selling at bargain prices and we're happy to have India get that bargain or Africa or China. It's fine." Over purchase of Russian oil by India and private Indian oil companies, Yellen said they "can also purchase oil at any price they want as long as they don't use these Western services and they find other services." ALSO READ | Buying Russian gas is not funding the war, says Jaishankar During the event, she termed India as one of the trusted trading partners of US. "In a world where supply chain vulnerabilities can impose heavy costs, we believe it’s important to strengthen our trade ties with India and the large number of countries that share our approach to economic relations," she remarked at the event. She said that the recent disruptions caused by the pandemic and Russia’s war on Ukraine are reasons to further deepen India-US economic ties. WATCH | US' Treasury Secretary Janet Yellen meets India's Finance Minister Nirmala Sitharaman India's External Affairs Minister S Jaishankar, has on various national and international platforms earlier, explained India's oil purchases from Russia where he made clear that India will do what is the best for the nation. WATCH WION LIVE HERE You can now write for wionews.com and be a part of the community. Share your stories and opinions with us here.

India can buy as much Russian oil as it wants, outside price cap, says US

The United States does not currently have sanctions in place against Russian energy exports to other countries, Pakistan newspaper Dawn reported citing a US State Department official.

The report comes as Russia became India’s top oil supplier in October, and Pakistan is seeking energy supplies from Russia at a discount.

“The United States does not currently have sanctions in place against Russian energy exports to other countries,” a US State Department spokesperson, who has been unnamed, told Dawn.

The spokesperson said that the decision to ban Russian energy imports has been left to the individual countries, hoping that they would take an appropriate decision based on their own circumstances.

“We continue to coordinate with allies and partners, including India and European allies and partners, to mitigate the impact of (President Vladimir) Putin’s war of aggression against Ukraine on global energy markets,” the spokesperson added.

Watch |&nbsp;Gravitas: Joe Biden launches a fight with big oil

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Meanwhile, India’s import of Russian oil surged in October, making it the highest ever.

According to energy cargo tracker Vortexa, Moscow supplied 935,556 barrels per day (bpd) of crude oil to India in October.

Also read |&nbsp;<a href="https://www.wionews.com/world/third-shot-at-the-white-house-trump-says-will-make-very-big-announcement-on-november-15-532058" hreflang="en">A 3rd shot at White House? Trump to make 'very big announcement' on Nov 15</a>

Russia now makes up for 22 per cent of India's total crude imports, ahead of Iraq's 20.5 per cent and Saudi Arabia's 16 per cent.

Before the Russia-Ukraine war, Russia had supplied only 36,255 barrels per day of crude oil to India in December 2021, whereas Iraq exported 1.05 million bpd and Saudi Arabia 952,625.

Also read |&nbsp;<a href="https://www.wionews.com/world/north-korea-says-us-persistently-spreading-a-groundless-rumour-of-arms-dealings-between-it-and-russia-532032">N.Korea claims US spreading a groundless 'rumour of arms dealings' with Russia</a>

The increase in Indian imports of Russian oil comes in the aftermath of the western sanctions on Moscow in response to its Ukrainian war.

As the West tried to choke Russian energy supplies, Vladimir Putin decided to diver its export to Asian countries by selling the oil for cheap. India and China reaped the benefits as both became the biggest consumer of Russian oil.

India depends on imports to meet 85 per cent of its petroleum needs. As a result of western sanctions, the prices of oil surged in the international markets, forcing India to look for alternative avenues to quench its oil needs.

(With inputs from agencies)

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The United States does not currently have sanctions in place against Russian energy exports to other countries, Pakistan newspaper Dawn reported citing a US State Department official.

The United States does not currently have sanctions in place against Russian energy exports to other countries, Pakistan newspaper Dawn reported citing a US State Department official. The report comes as Russia became India’s top oil supplier in October, and Pakistan is seeking energy supplies from Russia at a discount. “The United States does not currently have sanctions in place against Russian energy exports to other countries,” a US State Department spokesperson, who has been unnamed, told Dawn. The spokesperson said that the decision to ban Russian energy imports has been left to the individual countries, hoping that they would take an appropriate decision based on their own circumstances. “We continue to coordinate with allies and partners, including India and European allies and partners, to mitigate the impact of (President Vladimir) Putin’s war of aggression against Ukraine on global energy markets,” the spokesperson added. Watch | Gravitas: Joe Biden launches a fight with big oil Meanwhile, India’s import of Russian oil surged in October, making it the highest ever. According to energy cargo tracker Vortexa, Moscow supplied 935,556 barrels per day (bpd) of crude oil to India in October. Also read | A 3rd shot at White House? Trump to make 'very big announcement' on Nov 15 Russia now makes up for 22 per cent of India's total crude imports, ahead of Iraq's 20.5 per cent and Saudi Arabia's 16 per cent. Before the Russia-Ukraine war, Russia had supplied only 36,255 barrels per day of crude oil to India in December 2021, whereas Iraq exported 1.05 million bpd and Saudi Arabia 952,625. Also read | N.Korea claims US spreading a groundless 'rumour of arms dealings' with Russia The increase in Indian imports of Russian oil comes in the aftermath of the western sanctions on Moscow in response to its Ukrainian war. As the West tried to choke Russian energy supplies, Vladimir Putin decided to diver its export to Asian countries by selling the oil for cheap. India and China reaped the benefits as both became the biggest consumer of Russian oil. India depends on imports to meet 85 per cent of its petroleum needs. As a result of western sanctions, the prices of oil surged in the international markets, forcing India to look for alternative avenues to quench its oil needs. (With inputs from agencies) WATCH WION LIVE HERE:

As India becomes top importer of Russian oil, US says not planning sanctions

The Group of Seven rich nations and Australia have agreed to set a fixed price when they finalize a price cap on Russian oil later this month, rather than adopting a floating rate, sources said on Thursday.

US officials and G7 countries have been in intense negotiations in recent weeks over the unprecedented plan to put a price cap on sea-borne oil shipments, which is scheduled to take effect on Dec. 5, to ensure EU and US sanctions aimed at limiting Moscow's ability to fund its invasion of Ukraine do not throttle the global oil market.

“The Coalition has agreed the price cap will be a fixed price that will be reviewed regularly rather than a discount to an index,” said a coalition source, who was not authorized to speak publicly. “This will increase market stability and simplify compliance to minimize the burden on market participants.”

The initial price itself has not been set, but should be in the coming weeks, multiple sources said. Coalition partners agreed to regularly review the fixed price and revise it as needed, the source said, without disclosing further details.

Pegging the price as a discount to some index would have resulted in too much volatility and potential price swings, the source added.

The coalition worried that a floating price pegged below the Brent international benchmark might enable Russian President Vladimir Putin to game the mechanism by reducing supply, a second source with knowledge of the discussions said.

Putin could benefit from a floating price system because the price of his country's oil would also rise if Brent spiked due to a cut in oil from Russia, one of the world's largest petroleum producers. The downside of the agreed fixed price system is that it will require more meetings of the coalition and bureaucracy to review it regularly, the source said.

Also Read:&nbsp;<a href="https://www.wionews.com/world/russia-hints-retreat-in-southern-ukraine-but-kyiv-thinks-its-a-trap-531050">Russia hints at retreat in southern Ukraine, but Kyiv thinks it's a trap</a>

US Treasury Secretary Janet Yellen and other G7 officials argue the price cap, set to begin on Dec. 5 on crude and Feb. 5 on oil products, will squeeze funding to Russia without cutting supply to consumers. Russia has said it will refuse to ship oil to countries that set price caps.

Shipping services are eager to see more details about the G7 plan which is due to take effect in a month.

A steady price cap could enable insurers to more confidently roll over contracts and initiate new ones without fear that the price could be adjusted by the countries buying Russian oil, which could have potentially exposed insurers to sanctions.

No immediate comment was available from the treasury or the embassies of coalition members, which include the G7 rich nations, the European Union and Australia.

Separately, The Wall Street Journal reported on Friday that the United States and its allies had agreed on further details on which sales of Russian oil will face the price cap.

Each load of seaborne Russian oil will only be subject to the price cap when first sold to a buyer on land, the countries determined. Reuters could not immediately verify the report which cited people familiar with the matter. 
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The Group of Seven rich nations and Australia have agreed to set a fixed price when they finalize a price cap on Russian oil later this month, rather than adopting a floating rate, sources said on Thursday.

The Group of Seven rich nations and Australia have agreed to set a fixed price when they finalize a price cap on Russian oil later this month, rather than adopting a floating rate, sources said on Thursday. US officials and G7 countries have been in intense negotiations in recent weeks over the unprecedented plan to put a price cap on sea-borne oil shipments, which is scheduled to take effect on Dec. 5, to ensure EU and US sanctions aimed at limiting Moscow's ability to fund its invasion of Ukraine do not throttle the global oil market. “The Coalition has agreed the price cap will be a fixed price that will be reviewed regularly rather than a discount to an index,” said a coalition source, who was not authorized to speak publicly. “This will increase market stability and simplify compliance to minimize the burden on market participants.” The initial price itself has not been set, but should be in the coming weeks, multiple sources said. Coalition partners agreed to regularly review the fixed price and revise it as needed, the source said, without disclosing further details. Pegging the price as a discount to some index would have resulted in too much volatility and potential price swings, the source added. The coalition worried that a floating price pegged below the Brent international benchmark might enable Russian President Vladimir Putin to game the mechanism by reducing supply, a second source with knowledge of the discussions said. Putin could benefit from a floating price system because the price of his country's oil would also rise if Brent spiked due to a cut in oil from Russia, one of the world's largest petroleum producers. The downside of the agreed fixed price system is that it will require more meetings of the coalition and bureaucracy to review it regularly, the source said. Also Read: Russia hints at retreat in southern Ukraine, but Kyiv thinks it's a trap US Treasury Secretary Janet Yellen and other G7 officials argue the price cap, set to begin on Dec. 5 on crude and Feb. 5 on oil products, will squeeze funding to Russia without cutting supply to consumers. Russia has said it will refuse to ship oil to countries that set price caps. Shipping services are eager to see more details about the G7 plan which is due to take effect in a month. A steady price cap could enable insurers to more confidently roll over contracts and initiate new ones without fear that the price could be adjusted by the countries buying Russian oil, which could have potentially exposed insurers to sanctions. No immediate comment was available from the treasury or the embassies of coalition members, which include the G7 rich nations, the European Union and Australia. Separately, The Wall Street Journal reported on Friday that the United States and its allies had agreed on further details on which sales of Russian oil will face the price cap. Each load of seaborne Russian oil will only be subject to the price cap when first sold to a buyer on land, the countries determined. Reuters could not immediately verify the report which cited people familiar with the matter.

G7 coalition agrees to set a fixed rate for proposed price cap on Russian oil

Pakistan has expressed its interest in buying oil from Russia but added it would do so only if it is provided on the same rate as to India.&nbsp;Pakistan’s new finance minister Ishaq Dar, who is on an official visit to the US, said on Monday that his country is willing to buy fuel from Russia provided it is given at the same rate as to neighbouring India, reported The News International. 
 
Pakistan, which has been cosying up to the U.S., came up with the statement even when the U.S.-led West has imposed sanctions and is dissuading countries from buying Russian oil. 
 
Replying to a question, Dar said he hoped that the West would not object to Pakistan importing the discounted Russian fuel considering its financial hardships due to recent devastating floods.&nbsp;

ALSO READ |&nbsp;<a href="https://www.wionews.com/south-asia/pakistan-over-15000-complaints-registered-by-women-harassment-rape-and-family-issues-punjab-at-top-526619">Pakistan: Over 15,000 complaints registered by women for harassment, rape and family issues, Punjab at top</a>&nbsp;

On a question about US President Joe Biden saying that Pakistan was one of the most dangerous nations — with nuclear weapons without any cohesion, he said Prime Minister Shehbaz Sharif has already stated that there is a robust command and control system in the country and the US authorities have also acknowledged it often. 
 
Dar further said that he was optimistic that Pakistan would get out of the grey list of the Financial Action Task Force (FATF) as it has worked hard on it. 
 
Citing a joint report presented by the United Nations Development Programme, Asian Development Bank and the World Bank, Dar said, “Pakistan suffered losses to the tune of USD 32.40 billion due to floods. More than USD 16 billion are needed for the rehabilitation work.”&nbsp; 
 
“I have held 58 meetings with the heads of international financial institutions, the US, Saudi Arabia and other countries’ authorities during my four-day stay in Washington,” he was quoted as saying.

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According to media reports, Pakistan is staring at a possible food crisis as the production of wheat is expected to drop and so it is also planning to buy wheat from sanction-hit Russia amid the ongoing Ukraine conflict. 
 
“The two technical sides are already discussing that. We want to procure wheat from Russia,” Pakistan’s ambassador to Moscow Shafqat Ali Khan had told the news agency TASS in an interview, further adding that, “...Russia has emerged as a new supplier for us, earlier it used to be different other countries. We look to Russia as a long-term, stable partner when it comes to food supplies for us.” 
 
Pakistan is the 35th largest importer of crude petroleum in the world and in 2020-21, it imported crude oil worth $1.92 billion.

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Pakistan has expressed its interest in buying oil from Russia but added it would do so only if it is provided on the same rate as to India. Pakistan’s new finance minister Ishaq Dar, who is on an official visit to the US, said on Monday that his country is willing to buy fuel from Russia provided it is given at the same rate as to neighbouring India, reported The News International.

Pakistan has expressed its interest in buying oil from Russia but added it would do so only if it is provided on the same rate as to India. Pakistan’s new finance minister Ishaq Dar, who is on an official visit to the US, said on Monday that his country is willing to buy fuel from Russia provided it is given at the same rate as to neighbouring India, reported The News International. Pakistan, which has been cosying up to the U.S., came up with the statement even when the U.S.-led West has imposed sanctions and is dissuading countries from buying Russian oil. Replying to a question, Dar said he hoped that the West would not object to Pakistan importing the discounted Russian fuel considering its financial hardships due to recent devastating floods. ALSO READ | Pakistan: Over 15,000 complaints registered by women for harassment, rape and family issues, Punjab at top On a question about US President Joe Biden saying that Pakistan was one of the most dangerous nations — with nuclear weapons without any cohesion, he said Prime Minister Shehbaz Sharif has already stated that there is a robust command and control system in the country and the US authorities have also acknowledged it often. Dar further said that he was optimistic that Pakistan would get out of the grey list of the Financial Action Task Force (FATF) as it has worked hard on it. Citing a joint report presented by the United Nations Development Programme, Asian Development Bank and the World Bank, Dar said, “Pakistan suffered losses to the tune of USD 32.40 billion due to floods. More than USD 16 billion are needed for the rehabilitation work.” “I have held 58 meetings with the heads of international financial institutions, the US, Saudi Arabia and other countries’ authorities during my four-day stay in Washington,” he was quoted as saying. ALSO READ | Woman in Afghanistan commits suicide before Taliban could stone her: Report According to media reports, Pakistan is staring at a possible food crisis as the production of wheat is expected to drop and so it is also planning to buy wheat from sanction-hit Russia amid the ongoing Ukraine conflict. “The two technical sides are already discussing that. We want to procure wheat from Russia,” Pakistan’s ambassador to Moscow Shafqat Ali Khan had told the news agency TASS in an interview, further adding that, “...Russia has emerged as a new supplier for us, earlier it used to be different other countries. We look to Russia as a long-term, stable partner when it comes to food supplies for us.” Pakistan is the 35th largest importer of crude petroleum in the world and in 2020-21, it imported crude oil worth $1.92 billion. You can now write for wionews.com and be a part of the community. Share your stories and opinions with us here. WATCH WION LIVE HERE

Pakistan will buy oil from Russia if given on same rate as to India: Finance minister Ishaq Dar

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