"To enable oil to keep flowing into the global market, the treasury department is issuing a temporary 30-day waiver to allow Indian refiners to purchase Russian oil, treasury secretary Scott Bessent said in a statement posted to social media. This deliberately short-term measure will not provide significant financial benefit to the Russian government as it only authorizes transactions involving oil already stranded at sea."
"India is vulnerable to energy supply shocks, with crude stocks covering only about 25 days of demand. India gets about 40% of its oil imports from the Middle East through the Strait of Hormuz. India was the top buyer of Russian seaborne crude after Moscow's 2022 Ukraine invasion, but in January, its refiners started to reduce purchases under pressure from Washington."
"Cutting Russian oil purchases helped New Delhi avoid 25% tariffs and clinch an interim trade deal with the US. A source directly involved with the matter said India had approached Donald Trump's administration seeking approval to buy Russian crude imports due to the Iran conflict."
The US Treasury Department granted India a 30-day waiver to purchase Russian crude oil currently stuck at sea, according to Treasury Secretary Scott Bessent. This temporary measure aims to maintain global oil supply while limiting financial benefits to Russia, as it only covers transactions for already-stranded oil. The waiver addresses India's vulnerability to energy supply disruptions, with crude reserves covering only 25 days of demand and 40% of imports flowing through the Strait of Hormuz. India, previously the top buyer of Russian seaborne crude, had reduced purchases under US pressure to secure trade benefits. The approval follows India's request to Trump's administration, citing the Iran conflict's impact on Middle East oil supplies.
#us-india-trade-relations #russian-oil-sanctions #global-energy-markets #middle-east-geopolitics #energy-security
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