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The
United States and its allies in the Group of Seven rich nations
aim to prevent Russia from profiting from oil after its invasion
of Ukraine on Feb. 24, while ensuring that most of its oil
continues to flow to global markets.
The G7 nations plan to cap prices of sea-borne oil shipments
from Dec. 5, with a second cap on oil products from Feb. 5.
India, the world's third biggest oil importer and a traditional
ally of Russia, has not explicitly condemned what Russia calls
its "special military operation" in Ukraine.
India imports 85% of its crude needs and has emerged as Russia's
second-largest oil customer after China, taking advantage of
discounted Russian oil shunned by some Western buyers.
"If they want to use Western financial services like insurance,
the price cap would apply to their purchases," Yellen was quoted
as saying in a report published by the Moneycontrol news outlet,
citing the Press Trust of India (PTI).
"But even if they use other financial services, we believe the
price cap will give them leverage to negotiate good discounts
from world markets. We would hope to see India benefiting from
this programme."
Yellen will travel to India on Friday to participate in a
meeting of the U.S.-India Economic and Financial Partnership.
She is due to hold talks with Finance Minister Nirmala
Sitharaman on India's assumption of the G20 presidency, the U.S.
Treasury said.
She will then travel to the Indonesian island of Bali on
Saturday for a joint meeting of G20 finance and health ministers
before joining President Joe Biden at a G20 summit there on Nov.
15 and 16.
(Reporting by Shivam Patel in New Delhi; Editing by Robert
Birsel)
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