FX.co ★ US believes China and India to benefit from Russian oil price cap

India and China purchase Russian crude at a large discount and it seems that they are not willing to join the US-led initiative to impose a price cap on Russian oil sold in international markets. Nevertheless, the largest Asian countries are the main beneficiaries of Western sanctions imposed against Russia. Since the US and its European allies banned Russian energy imports, India and China have been filling their reserves with cheap oil. In spite of a narrow supply and high demand in the energy market, Russia sold oil to these countries at a price three times lower than the market one. The new price ceiling may bring China and India more advantages, US Treasury Secretary Janet Yellen believes. "We see the price cap is something that benefits China, benefits India, and benefits all purchasers of Russian oil," Yellen said. She added that China and other buyers of Russian oil would have more leverage to negotiate lower prices. "I believe that ending Russia's war is a moral imperative. It is also the single best thing we can do to help the global economy," the US Treasury Secretary said earlier.