India will not be affected by price cap of $60 per barrel on Russian oil, says former petroleum secy RS Pandey

A price cap at $60 per barrel set by the G7 as well as an outright ban by the European Union on Russian seaborne oil - all this came into effect this week as the two blocs try to reduce the Kremlin's ability to continue financing the Ukraine war.

The EU's oil embargo also applies to EU operators that insure and finance ships carrying Russian crude oil around the world. But it does not apply to Russian oil imports coming into the bloc through pipelines. About 10 percent of oil imports coming in from the Druzhba oil pipeline will continue temporarily.

However, S&P Global expects to see a significant rise in demand if China eases COVID restrictions.

To discuss this CNBC-TV18’s Manisha Gupta spoke to Sushant Gupta, Director at Wood Mackenzie; Paul Hickin, Director at S&P Global Platts; and RS Pandey, former petroleum secretary.

Speaking to CNBC-TV18, RS Pandey, former petroleum secretary said that as on today this oil price cap will not have much difficulty for India. He said, "After the war as the situation developed India started getting more and more from Russia and now this price cap $60 minus the insurance and shipping cost – well the Russia is not getting more than this at the present moment, so there is no difficulty. Even if it goes above $60 as we understand Russia has arranged logistics and they will deliver."