EU energy chief urges China and India to support a price cap on Russian oil

BALI, Indonesia — The European Union on Saturday urged China and India to join the G-7 initiative to apply a cap on Russian oil prices, saying it is unfair for countries to pay excess revenues to Moscow amid the Kremlin’s war in Ukraine. The G-7 nations announced Friday that they agreed on a plan to impose a set price on Russian oil. The policy is designed to reduce the profits that Russia makes from selling oil and acts as another punitive measure against the Kremlin over its onslaught in Ukraine. Details of how the price cap will work are still being finalized, but energy analysts have raised concerns about this plan, in particular about whether key consumers such as China and India will join in. China and India have increased their purchases of Russian oil following Moscow’s invasion of Ukraine, benefiting from discounted rates. When asked whether the EU expects China and India to help with the proposed price cap, Europe’s Energy Commissioner Kadri Simson said: “I think that they should.” Speaking to CNBC on the sidelines of the G-20 energy meeting in Indonesia, Simson said China and India “are willing to buy Russian oil products while excusing themselves that this is important for their security of supply. But it is unfair to pay excess revenues to Russia.” “So a cap is giving also the buyers who have not joined our sanctions a chance to receive oil with a fair price, a price where a war factor is not added,” Simson said. The U.S. said last week that it had constructive talks with India on the matter, according to Reuters, while China reportedly said in July that a price cap was a “very complicated issue.”