German Chancellor’s foreign and security policy adviser, Jens Plotner, on Monday said India is benefiting from the price cap on Russian oil imposed by major economies of the world although New Delhi is not a party to the decision by the West to impose the cap in early December to reduce Moscow’s earnings from fuel that, according to them, is “financing its war against Ukraine”.

Plotner said this at a media interaction after his meetings with external affairs minister S. Jaishankar and national security adviser Ajit Doval.

Plotner is in India in connection with the visit of German Chancellor Olaf Scholz later this month. The price cap — introduced by G7 countries along with the European Union and Australia — came into effect on December 5 and bars countries from paying more than $60 a barrel for Russian oil.

It prevents Russian crude sold for more than $60 from being shipped using G7 and EU tankers, insurance companies and credit institutions.

Since the insurance companies and credit institutions are based in G7 and EU countries, this has had a cascading effect, and Russia earlier this month announced that it will cut production from March.

Plotner avoided commenting on India’s decision to increase its oil purchases from Russia since the war with Ukraine began on February 24 last year, maintaining that Germany cannot comment on this having been a major consumer of Russian oil and gas for decades.

The price cap is designed to reduce Russia’s revenues and its ability to fund the war in Ukraine and limit the impact on global energy prices, particularly for low and middle-income countries.

Russia has warned that it will snap oil supplies to any country that joins the price cap plan. As for India’s offer to mediate in the Russia-Ukraine war, Plotner said: “India quite naturally comes into consideration when you deal with these kinds of complicated conflicts. This having been said, at this moment we do not have a shortage of mediators but we have a shortage of Russian willingness to stop this war and get out of its neighbour country…. The Indian angle is very important… the voice of New Delhi is one which is heard very very clearly and which is listened to in Moscow and that makes it all the more important.”

On his meeting with Plotner, Jaishankar tweeted: “Discussed our expanding strategic partnership and exchanged views on the situation in Europe and the Indo-Pacific.”