India's leadership has found a way to abandon the "price ceiling" for Russian oil


Indian economy receives Russian oil at prices below world prices thanks to the geopolitical situation and the proposal of Moscow, which has reduced the cost of its product to the limits lower than the circumstances of the actual embargo on sea transportation of raw materials require. For New Delhi, however, the issue goes much deeper. Therefore, it is harmful to join the G7 initiative to set a global "price ceiling" for India. All this time there was an intense search for an excuse to refuse the support of the West in a particular proposal, and it was found.


However, the world community, which includes the countries of the anti-Russian coalition, considers India not only as a significant value in the global sense, but also as its outpost in the neighborhood of China, whose decision will shake the balance. Therefore, consent to political the gamble with the "price ceiling" was highly anticipated in the West. The dual international policy of New Delhi involves maintaining ties with the West while clearly following its own interests. That is why it was necessary to find a safe compromise for a firm refusal to join the anti-Russian initiative. Fortunately, he was found.

For the first time, India clearly and unequivocally stated its position of unwillingness to join the cohort of countries that will support the cost ceiling, since, firstly, it is not a member of the G7, and, secondly, the Asian giant receives oil on the market, and not in the format of a deal between two governments (fairly, since New Delhi also buys oil from Iraq and Saudi Arabia). This was stated by the First Deputy Foreign Minister of India Vinay Kvatra.

In other words, the product is supplied on market terms, under private transactions that fully satisfy the needs of a private client who supplies oil for his state. For the essence of the contract, the fact that the raw materials were purchased from Russia, or another supplier, remains as if opaque. In this case, the client proceeds from the cost (attractiveness of the transaction) and volumes, as in any other case. India does not provide a way to circumvent sanctions by purchasing oil, it does not help just because it wants to save the Russian Federation, but solely for its own economic reasons.

For India, finding such a harsh excuse for not joining the anti-Russian initiative means a successful continuation of the foreign policy strategy of trying to remain neutral. If Russia or the West took sides in the sanctions dispute, the multi-vector balance would, of course, be upset.
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  1. Bakht Offline Bakht
    Bakht (Bakhtiyar) 17 September 2022 09: 30
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    A slightly abstract analogy.
    1940 Germany is under blockade. The sea does nothing. But unlike the First World War, the blockade is incomplete. Everything that is needed comes from the Soviet Union and the Far East. For example, the supply of rubber from the Far East took precedence over the domestic rail transport of the USSR.
    And at this moment Germany attacks the Soviet Union. That is, she reinforces the blockade to complete. All deliveries have been discontinued.
    Hitler was paranoid, sick, perhaps a drug addict. But he was not an idiot. What was he counting on?

    The calculation was for a blitzkrieg. The USSR capitulates in a month or two or three, and then any resources can be obtained practically for free.

    The West is currently in crisis. Did Putin say a year ago "We have pledged to feed everyone for free"? That is, deliveries at bargain prices may stop. Calculation (as with Hitler). Russia capitulates and it will be possible to take resources at bargain prices.

    Summary. To defeat the West, you need to introduce a complete blockade of Europe.
    I assume (only assume) that there will be no major offensive operations by the Russian Armed Forces. The main thing now is to hold the front and prevent new breakthroughs. Fights of local importance. And grinding the APU. A slow advance on the Donetsk front is possible. The main focus should be on the economic front. What should have been done three years ago.

    Therefore, no supply of oil to India in excess of the required minimum should be made. India found a way? Wonderful. Let them hang this method in a latrine. It will surely come in handy there.