How EU, G7 Price Cap On Russian Oil Will Affect India?

The European Union (EU) and the Group of Seven (G7) nations decided to cap the price of Russian seaborne crude oil at $ 60 per barrel. Though it won’t impact India because India’s exposure to Russian crude oil is minimal, said Hardeep Singh Puri, Union Minister of Petroleum and Natural Gas. 

“Russia is not our top supplier of oil; our traditional top suppliers are Iraq, Saudi Arabia, and the UAE,” Puri told BQPrime. In FY22, India imported 53 percent of its oil from these countries. In FY23, between April and September, 52 percent of India’s crude oil imports came from these countries, he added.

Following the announcement of the G7 and EU price cap on Russian crude oil, Indian officials said it would continue purchasing crude oil. Hardeep Singh also said that ━ “Who buys Russian oil and where it is refined, we have nothing to do with that. The oil trade is conducted by economic entities, not by the government.”

Who will be impacted by the G7 Russian oil price cap?

Even though the G7 Russian oil price cap won’t impact India, if Russia refuses to sell the crude oil at the capped price or cut down the production, it will affect the global supply chain. According to Hardeep Singh Puri, it will put pressure on countries to meet the energy demand, resulting in a rise in crude prices. 

Green Hydrogen Policy will come soon in India

India can expect to have a green hydrogen policy soon, as per the news. “Different ministers are involved in the policy, and the internal churning on the green hydrogen policy is now beginning to take shape,” said the oil minister.  

The minister also explained that the fund is pouring into India from venture capitalists for green hydrogen production, which is a positive sign for the economy. 

Finance Minister Nirmala Sitharaman first revealed India’s plan to harness green hydrogen in the 2021 budget speech. Recently, Adani joined hands with TotalEnergies to invest in green hydrogen. 

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