Russian Crude Oil Being Shipped To India On Western-Insured Tankers Under G7 Price Cap: Report

Russia has reportedly reneged on its vow to block sales under the G7-imposed price cap on crude oil, with at least seven Russian crude oil cargoes shipped to India on western-insured tankers since the cap's implementation on 5 December.

At least seven Russian crude oil cargoes have been loaded on to western-insured tankers since the price cap started on 5 December, according to Financial Times's analysis of shipping and insurance records.

The price cap allows buyers of Russian crude oil to access western services, such as insurance and brokering, essential for global seaborne trade in oil, only if they attest to paying less than $60 per barrel.

The seven tankers, carrying a total of around 5 million barrels of crude and departing from Russia's Baltic ports, have listed India as their destination.

The development comes as India along with China have emerged as the largest buyers of Russian crude oil since the beginning of Russia-Ukraine war in February this year.

Indian refiners Reliance and Bharat Petroleum Corporation Limited are said to be the buyers of some of the cargoes, according to the shipping data.

The price cap was implemented to keep Russian oil flowing and prevent supply shortages, but at a lower price to reduce the Kremlin's revenues. Putin has threatened to cut production in response to the cap.