The United States hasn’t told India to stop buying oil from Russia. Instead, they want to make sure the global oil supply stays stable while cutting off money for Russia. Eric Van Nostrand, a U.S. Treasury official, explained this in New Delhi. He said they want to limit how much money Russian President Putin makes from selling oil.
Nostrand mentioned that buyers can still get Russian oil for cheaper if they don’t use Western services like insurance and brokering. This way, Russia has to sell oil for less money. The goal is to give Russia fewer options: sell oil at a lower price, offer bigger discounts to buyers who don’t use Western services, or stop selling oil altogether.
Some ships that carry Russian oil have been named in recent sanctions and are at risk of being sanctioned. U.S. officials are in India to talk about working together against money laundering and terrorism financing, as well as enforcing the price cap.
Source: Reuters