"We have begun talks with India about how a price cap would work and what the implications would be," he said.
US President Joe Biden informed Indian Prime Minister Narendra Modi in April that increasing India's energy imports from Russia was not in India's best interests. According to White House press secretary Jen Psaki, during a virtual conference with PM Modi, Biden made it plain that increasing India's energy imports from Russia was not in the country's best interests.
Psaki characterised the meeting as helpful and fruitful rather than "adversarial." She opted not to say whether Biden requested any particular guarantees from India regarding energy imports.
Price Cap on Russian Oil: Is it practical?
Negotiators, especially those from the US and Italy, are trying to establish a system that limits the flow of finance to Russia while maintaining oil supply for key users like China and India in order to prevent additional price volatility.
The discussion is not expected to cover the mechanics of a price cap's implementation or the amount at which it would be imposed, though. A senior Biden administration insider claims that decision-makers would instead direct the finance ministers to concentrate on working out the kinks in the next weeks and months.
The alternative will be mentioned as an idea in the final communique because a political decision to explore it has been made, said a G7 official. By placing restrictions on insurance and other services necessary for the delivery of Russian oil, the US has suggested that the cap might be successful. However, the oil market has serious doubts about how something like this may work.
(With agency inputs)
