Russia has warned
that it would stop supplies of crude oil to any country that joined the
initiative of United States to introduce price cap Russian ambassador to India
Denis Alipov said
“Moscow would simply stop supplying oil to
the global markets and to those countries that join the US initiative on
the price cap. I believe it would create a very acute shortage of supply in the
global markets and ultimately the price for oil globally...would sharply go
up,” he said during the course of a virtual news briefing
The price cap on Russian oil agreed by the G7 – which includes the US, the European Union, Canada,
France, Germany, Italy, Japan and Britain – will create a very acute supply
shortage in global markets and will not be beneficial to India’s interests,
Mr Alipov conceded
that Russian oil supplies to India have
“gone down lately” but said the two countries are discussing long-term
agreements for energy supplies at a very competitive price. The supplies from
Russia to India have increased manifold [but] the supply has gone down lately.
But we are talking about long-term supplies and generally it is a matter of
demand and supply...we are ready to enhance this cooperation,” Alipov said in
response to a question on energy cooperation.
We are talking
and interested to have...long-term contracts between us on oil supplies. Those
long-term agreements presuppose a very competitive price,” he said. Energy cooperation
was among the issues discussed by Prime Minister Narendra Modi and President
Vladimir Putin when they met on the margins of the Shanghai Cooperation
Organization (SCO) Summit in Uzbekistan last week, Alipov said.
government has so far taken “a very careful approach” towards the price cap and
“I am not sure that would be beneficial to the Indian interests”, he said. Russia,
on its part, will not trade “to our detriment if we consider that the price is
unfair and unacceptable to us”, Alipov said.