Russia is currently the leading supplier of oil among other countries. After months of debate, the Group of Seven countries, along with the European Union, and Australia agreed to limit the price of Russian oil to $60 per barrel for seaborne Russian Urals crude oil. This price cap came into effect this week.
The G-7 and other Western countries want to Penalize Russia for invading Ukraine and limit the benefits that Russia receives from the oil exports. However, they also want to maintain a certain amount of Russian oil in the world’s supply so that costs for energy aren’t sharply increased.
Russia had first claimed that the price restriction may hardly affect its output. Later, it also mentioned blocking shipments to nations that pushed this process of limiting Russian oil. According to Russian media reports, Alexander Novak, deputy prime minister, said that a system was being developed and that the restriction on oil shipment to certain nations will go into place before the year ended.
It’s interesting to note that in October and November, India’s leading oil supplier was Russia, despite the country’s 0.2% share of global oil imports in that year. According to Reports, India purchased 53%, or around 3.7 million tonnes, of the seaborne Urals oil that Russia sold in November.
