U.S. to say Indian refineries help make Russia oil price cap work

The G7 price cap on Russian oil shipments is cutting the revenue that Moscow has available to support its invasion of Ukraine, and the mechanism's effectiveness is helped by the recent actions of Indian refiners, U.S. officials will say in New Delhi on Thursday, according to prepared remarks.

The U.S. Treasury officials, Eric Van Nostrand, assistant secretary for economic policy, and Anna Morris, acting assistant secretary for terrorist financing, will make the remarks at an event held by the Ananta Aspen Centre in New Delhi, the Treasury told Reuters on Wednesday.

"We know that the Indian economy has much at stake in the Russian oil trade, and has much at stake from the global supply disruptions that the price cap is designed to avoid," the officials will say.

India has been one of the top consumers of Russian oil since Western sanctions have shifted the market for the crude from Europe to Asia, imposing costs on Russia for relying on a "shadow fleet" of aging tankers to ship it further.

New Delhi has traditionally had close economic and defense ties with Moscow and refrained from criticizing Russia over its war in Ukraine. But last week the foreign ministers of Ukraine and India said they had agreed to restore trade and cooperation to levels before the Russian invasion of Ukraine.

The price cap imposed by the G7 countries, the European Union and Australia bans the use of Western maritime services such as insurance, flagging and transportation when tankers carry Russian oil priced at or above $60 a barrel. The West imposed the mechanism after Russia's February 2022 invasion of Ukraine.

The U.S. officials are in India this week meeting with government officials and business leaders to discuss cooperation on anti-money