Livemint | 'No pressure', says Hardeep Puri ahead of Russian oil price cap deadline

Nov 17,2022

Union Minister for Petroleum and Natural Gas Hardeep Singh Puri has said that the incumbent government feels no pressure on an impending price cap on Russian crude oil proposed by the G-7, the group of seven advanced countries.

"We will see it when it happens. The Modi government feels no pressure. I have no fear or anxiety. The market will deal with the logistics issue if it arises. Whatever happens, will be dealt with," Puri responded to reporters on being asked about the price cap mechanism on Russian crude oil proposed by G7 nations starting December 5.

Minister Puri made the remarks at a press conference on the sidelines of World LPG Week 2022 held in Greater Noida on Wednesday.

On September 2, the G7 countries agreed to future implementation of a price cap on oil exports from Russia to limit its largest source of income.

What does Russia oil price cap mean?
The group of seven nations, G7 is working to set a price cap on Russian oil. The G7 decided to put such a price cap on Russian oil to limit its oil revenues. These seven nations include Canada, France, Germany, Italy, Japan, the United Kingdom, the United States and the European Union.

The price cap is specifically designed to reduce Russia’s revenues and its ability to fund the war in Ukraine and limit the impact on global energy prices, particularly for low and middle-income countries. Russia has warned that it will snap oil supplies to any country that joins the price cap plan.

Finance ministers of G7 countries on 2 September proposed that oil-related service providers be allowed to transact in Russian seaborne oil and petroleum products only at the price cap or lower.