The Trump administration quietly reversed course on Friday (Apr 17), issuing a second month-long sanctions waiver allowing the purchase of Russian crude oil and petroleum products currently at sea. This comes just two days after Treasury Secretary Scott Bessent told reporters the US would not be extending the measure. How would this waiver benefit India, which imports around 38 and 40 per cent of its total crude imports from Moscow? All you need to know.<h2>US extends sanction waiver on Russian oil</h2>The Treasury Department has issued a month-long sanctions waiver for Russian oil. It covers oil already loaded onto vessels as of April 17 and permits purchases through 12:01 AM on May 16. This waiver is the second of its kind in recent days. It mirrors a previous waiver that expired on April 11, which was designed to cushion global energy markets from the supply shock caused by Iran's effective closure of the Strait of Hormuz following the US-Israel military campaign that began on February 28.Also read | <a href="https://www.wionews.com/world/india-calls-out-unacceptable-attacks-on-ships-in-strait-of-hormuz-flags-lost-precious-lives-of-indian-seafarers-1776387875954">India calls out 'unacceptable' attacks on ships in Strait of Hormuz, shares 3-point plan for regional stability</a><h2>Didn't Bessent say no more waivers on Russian oil?</h2>United States' reversal is notable both for its timing and its political awkwardness. Bessent had been unambiguous on Wednesday (Apr 15), saying Washington would not renew the waiver for either Russian or Iranian oil. "We ​will not be renewing the general license on Russian oil, and we will not be renewing the general license ​on Iranian oil. That was oil that ​was on the water prior to March 11. So all ‌that ⁠has been used," Bessent said at a White House briefing. The administration's U-turn two days later suggests that energy market pressures, and their domestic political consequences ultimately overrode the harder line. US gasoline prices have risen sharply since the conflict began, adding pressure on households ahead of the midterm elections later this year.<h2>Waiver only for oil already at sea</h2>Notably, the waiver applies only to oil already in transit and is not intended to encourage new transactions.Also read | <a href="https://www.wionews.com/photos/ukraine-s-robot-army-how-kyiv-used-ground-based-robots-to-carry-out-over-100-combat-operations-against-russia-all-you-need-to-know-in-pics-1776323150157">Ukraine's robot army: How Kyiv used ground-based robots to execute 100+ combat operations against Russia | In Pics</a><h2>What it means for India</h2>For India, the waiver's extension provides short-term relief, though New Delhi previously made clear it doesn't consider US sanctions policy determinative of its own energy decisions.Russia currently supplies between 38 and 40 per cent of India's total crude imports, averaging roughly 1.57 to 1.98 million barrels per day in early 2026. India depends on imports to meet over 88 per cent of its energy requirements, and with Iranian oil effectively off the table due to longstanding sanctions, Russia and the broader West Asian region are its primary alternatives, both of which have been disrupted by the current conflict.When the first waiver expired on April 11, Indian refineries signalled they would continue purchasing Russian crude regardless of the US position. An official cited by Mint said, "Efforts are on for further LPG purchases from Russia. Also, import of both crude and LPG is likely to continue from non-sanctioned entities." The official described India's energy import strategy as a sovereign decision that does not hinge on US sanctions policy.&nbsp;Disclaimer: WION takes utmost care to accurately and responsibly report ongoing conflicts in West Asia involving Israel, Iran, US, Gulf nations and non-state actors like Hezbollah, Hamas, Houthis, Islamic State, and others. Claims and counterclaims, disinformation and misinformation are being made online and offline. Given this context, WION cannot independently verify the authenticity of all statements, social media posts, photos and videos.

The United States has extended a one-month sanctions waiver for Russian crude that was already on ships. And for India, that matters more than it might look at first glance. All you need to know.

The Trump administration quietly reversed course on Friday (Apr 17), issuing a second month-long sanctions waiver allowing the purchase of Russian crude oil and petroleum products currently at sea. This comes just two days after Treasury Secretary Scott Bessent told reporters the US would not be extending the measure. How would this waiver benefit India, which imports around 38 and 40 per cent of its total crude imports from Moscow? All you need to know. US extends sanction waiver on Russian oil The Treasury Department has issued a month-long sanctions waiver for Russian oil. It covers oil already loaded onto vessels as of April 17 and permits purchases through 12:01 AM on May 16. This waiver is the second of its kind in recent days. It mirrors a previous waiver that expired on April 11, which was designed to cushion global energy markets from the supply shock caused by Iran's effective closure of the Strait of Hormuz following the US-Israel military campaign that began on February 28. Also read | India calls out 'unacceptable' attacks on ships in Strait of Hormuz, shares 3-point plan for regional stability Didn't Bessent say no more waivers on Russian oil? United States' reversal is notable both for its timing and its political awkwardness. Bessent had been unambiguous on Wednesday (Apr 15), saying Washington would not renew the waiver for either Russian or Iranian oil. "We will not be renewing the general license on Russian oil, and we will not be renewing the general license on Iranian oil. That was oil that was on the water prior to March 11. So all ‌that ⁠has been used," Bessent said at a White House briefing. The administration's U-turn two days later suggests that energy market pressures, and their domestic political consequences ultimately overrode the harder line. US gasoline prices have risen sharply since the conflict began, adding pressure on households ahead of the midterm elections later this year. Waiver only for oil already at sea Notably, the waiver applies only to oil already in transit and is not intended to encourage new transactions. Also read | Ukraine's robot army: How Kyiv used ground-based robots to execute 100+ combat operations against Russia | In Pics What it means for India For India, the waiver's extension provides short-term relief, though New Delhi previously made clear it doesn't consider US sanctions policy determinative of its own energy decisions. Russia currently supplies between 38 and 40 per cent of India's total crude imports, averaging roughly 1.57 to 1.98 million barrels per day in early 2026. India depends on imports to meet over 88 per cent of its energy requirements, and with Iranian oil effectively off the table due to longstanding sanctions, Russia and the broader West Asian region are its primary alternatives, both of which have been disrupted by the current conflict. When the first waiver expired on April 11, Indian refineries signalled they would continue purchasing Russian crude regardless of the US position. An official cited by Mint said, "Efforts are on for further LPG purchases from Russia. Also, import of both crude and LPG is likely to continue from non-sanctioned entities." The official described India's energy import strategy as a sovereign decision that does not hinge on US sanctions policy. Disclaimer: WION takes utmost care to accurately and responsibly report ongoing conflicts in West Asia involving Israel, Iran, US, Gulf nations and non-state actors like Hezbollah, Hamas, Houthis, Islamic State, and others. Claims and counterclaims, disinformation and misinformation are being made online and offline. Given this context, WION cannot independently verify the authenticity of all statements, social media posts, photos and videos.

The United States has extended a one-month sanctions waiver for Russian crude that was already on ships. And for India, that matters more than it might look at first glance. All you need to know.

US extends Russian oil sanctions waiver despite Scott Bessent's pledge not to. What does it mean for India?

India’s crude oil imports from Russia are set to hit record highs as the ongoing Gulf crisis and Iran-related tensions disrupt supplies through the strategic Strait of Hormuz. With shipping risks rising and Middle Eastern flows tightening, Indian refiners are increasing purchases of discounted Russian crude to ensure energy security.


India's Russian Oil Imports Poised for Record Amid Gulf Crisis

US Congressman Brad Sherman on Wednesday (Feb 18) slammed President Donald Trump's continued pressure on India regarding its purchase of Russian oil, calling the policy unfair and inconsistent. In a statement posted on social media, Sherman accused Trump of "grasping for excuses to slap outrageous tariffs on India." The California Democrat questioned why India was being penalised despite importing a smaller share of crude from Russia compared to some European countries.Also read | <a href="https://www.wionews.com/world/moscow-rejects-us-claim-india-will-ditch-russian-oil-says-trump-trying-to-grab-right-to-dictate-to-independent-nations-1771464523183">Russia blasts US over India oil claim, slams Trump's attempt to dictate terms</a>

<h2>India 'being singled out'?</h2>Sherman pointed out that India imports roughly 21 per cent of its crude oil from Russia, yet faces tariff threats. By contrast, he noted, Hungary sources nearly 90 per cent of its crude from Russia but has not been subjected to similar tariff action."He claims it’s about importing Russian oil — yet Hungary imports 90% of its crude from Russia with no tariffs," Sherman wrote. He also highlighted that China, Russia's largest oil buyer, has not faced sanctions specifically tied to its purchase of Russian crude.Also read | <a href="https://www.wionews.com/world/white-house-releases-first-official-fact-sheet-on-us-india-trade-deal-says-it-ll-open-1-4b-strong-market-to-american-goods-1770701855280">White House releases first official fact sheet on US-India trade deal; no mention of New Delhi ending Russian oil purchase</a>"India gets just 21% of its crude from Russia, but our ally is being singled out," he added, urging the administration to reverse the policy. "The President should reverse this policy immediately."

<blockquote class="twitter-tweet">President Trump is grasping for excuses to slap outrageous tariffs on <a href="https://twitter.com/hashtag/India?src=hash&amp;ref_src=twsrc%5Etfw">#India</a>. He claims it’s about importing Russian oil — yet Hungary imports 90% of its crude from Russia with no tariffs. And China, Russia’s biggest oil buyer, hasn’t been hit with sanctions tied to purchasing…&mdash; Congressman Brad Sherman (@BradSherman) <a href="https://twitter.com/BradSherman/status/2024246649296392496?ref_src=twsrc%5Etfw">February 18, 2026</a></blockquote> <script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script>

<h2>Russia slams Trump</h2>Congressman Sherman's statement comes on the heels of Russia's vehement rejection that India was preparing to cut back on purchases of Russian oil. Pushing back against claims from Washington that New Delhi has agreed to halt imports of Russian crude, the Russian Foreign Ministry said it had "no reason to believe" that was true.&nbsp;Speaking at her weekly briefing, Russian Foreign Ministry spokesperson Maria Zakharova said Moscow sees "no reason to believe" that India has shifted its position on buying Russian hydrocarbons."India’s purchase of Russian hydrocarbons benefits both countries and helps maintain stability in the international energy market," she said, according to PTI.&nbsp;

US Congressman Brad Sherman slammed President Donald Trump’s pressure on India over Russian oil imports, calling it unfair and inconsistent. He said India, which imports about 21 per cent of its crude from Russia, was being ‘singled out’. Here's what he said.

US Congressman Brad Sherman on Wednesday (Feb 18) slammed President Donald Trump's continued pressure on India regarding its purchase of Russian oil, calling the policy unfair and inconsistent. In a statement posted on social media, Sherman accused Trump of "grasping for excuses to slap outrageous tariffs on India." The California Democrat questioned why India was being penalised despite importing a smaller share of crude from Russia compared to some European countries. Also read | Russia blasts US over India oil claim, slams Trump's attempt to dictate terms

US Congressman Brad Sherman slammed President Donald Trump’s pressure on India over Russian oil imports, calling it unfair and inconsistent. He said India, which imports about 21 per cent of its crude from Russia, was being ‘singled out’. Here's what he said.

India 'being singled out’? US Congressman accuses Trump of using Russian oil as excuse to hit New Delhi with tariffs

Russia’s oil and gas revenues dropped to a five-year low in 2025, dealing a major blow to the country’s budget. These revenues are critical for funding Moscow’s operations in Ukraine, and the slump in crude prices and gas exports has strained the national economy.


Russia’s Oil & Gas Revenues Fall to Five-Year Low, Budget Hit in 2025

Russian President Vladimir Putin doubled down on his claim that Russia did not start the war in Ukraine.

He referred to the ongoing invasion as a "special military operation" aimed at halting the conflict, not initiating it.
Putin also stated that Russia, being the largest country by landmass, had "no need to take territory" from Ukraine — despite the ongoing occupation of Ukrainian regions like Donetsk, Luhansk, Kherson, and Zaporizhzhia.

‘Russia did not start the war’: Putin’s surprising claim | Lambasts European countries

White House Trade Adviser Peter Navarro has stirred controversy by praising India's diplomatic influence in the Ukraine-Russia conflict, stating that "the road to peace runs through New Delhi" and calling PM Narendra Modi "a great leader." However, Navarro also criticized India’s trade practices and continued oil trade with Russia, citing them as reasons behind the Trump administration’s decision to impose a 50% tariff and an unspecified penalty on Indian goods, effective August 27. The move has triggered debate over US-India ties amid growing global tensions.

Trump's trade advisor calls India 'Maharaja of tariffs'

To further isolate the Russian military and economic infrastructure in the weeks leading up to Donald Trump's inauguration, the Biden administration is considering additional, more severe penalties on Russia's profitable oil trade.

A Bloomberg report quoting sources showed President Joe Biden’s team was mulling sanctions targetting Russian oil shipments. 
 
The specific details of these proposed measures are still being finalised. Biden had long opposed the move on concerns that it may cause energy prices to skyrocket, particularly in the months leading up to November's election. 
 
However, the administration is now prepared to take more assertive measures in response to falling oil prices caused by a global surplus. This comes amid mounting concerns that Trump would rush a settlement between Russia and Ukraine to end their almost three-year war.

Given the mixed outcomes of past attempts to limit the Kremlin's energy earnings, and the fact that average us fuel prices have reached their lowest level since mid-2021, the deliberations show that the administration is more prepared to take risks in confronting Russia. 
 
The Biden team has taken steps in the last few weeks to increase military and financial aid to Ukraine. The new plan includes a fresh embargo on shipments from the world's leading oil producer, targetting specific countries. 
 
This move would reverse policies put in place almost two years ago following Russia's full-scale invasion of Ukraine in February 2022. The administration is also considering further penalties against Russia's oil tanker fleet. 
 
In the next few weeks, new restrictions are likely to be placed on the so-called shadow fleet.

(With inputs from the agencies)

To further isolate the Russian military and economic infrastructure in the weeks leading up to Donald Trump's inauguration, the Biden administration is considering additional, more severe penalties on Russia's profitable oil trade.

To further isolate the Russian military and economic infrastructure in the weeks leading up to Donald Trump's inauguration, the Biden administration is considering additional, more severe penalties on Russia's profitable oil trade. A Bloomberg report quoting sources showed President Joe Biden’s team was mulling sanctions targetting Russian oil shipments. The specific details of these proposed measures are still being finalised. Biden had long opposed the move on concerns that it may cause energy prices to skyrocket, particularly in the months leading up to November's election. However, the administration is now prepared to take more assertive measures in response to falling oil prices caused by a global surplus. This comes amid mounting concerns that Trump would rush a settlement between Russia and Ukraine to end their almost three-year war. Given the mixed outcomes of past attempts to limit the Kremlin's energy earnings, and the fact that average us fuel prices have reached their lowest level since mid-2021, the deliberations show that the administration is more prepared to take risks in confronting Russia. The Biden team has taken steps in the last few weeks to increase military and financial aid to Ukraine. The new plan includes a fresh embargo on shipments from the world's leading oil producer, targetting specific countries. This move would reverse policies put in place almost two years ago following Russia's full-scale invasion of Ukraine in February 2022. The administration is also considering further penalties against Russia's oil tanker fleet. In the next few weeks, new restrictions are likely to be placed on the so-called shadow fleet. (With inputs from the agencies)

US weighing new, harsher sanctions on Russia's lucrative oil trade

US Ambassador to India Eric Garcetti has claimed the US had allowed India to buy Russian oil. He said that they allowed the purchase to take place to ensure the prices did not go up globally. His statement has triggered a series of question marks. Molly Gambhir tells you more.

Gravitas: US Ambassador's statement on India's purchase of Russian oil

As Russia’s military involvement in Ukraine continues, the country’s oil and gas sector is struggling with a severe shortage of workers, threatening its ability to sustain operations and innovate, Bloomberg News reported.<o:p></o:p>

The escalating conflict has complicated the longstanding demographic challenges, driving labour scarcity across various sectors of the economy. <o:p></o:p>

Despite offering competitive salaries and incentives, energy companies struggle to attract talent amidst stiff competition from the military and arms manufacturers. <o:p></o:p>

This scarcity raises concerns about the industry's capacity to maintain its crucial role in funding the war and sustaining economic stability.<o:p></o:p>

Russia's oil and gas industry, the basis of the nation's economy, faces a dire manpower shortage amidst the ongoing conflict in Ukraine. <o:p></o:p>

The sector, instrumental in financing Russia's military activities, confronts challenges in recruitment and retention as the demands of war strain the workforce.<o:p></o:p>

With the nation's economy fully mobilised for war, the energy industry competes fiercely with the military and defence sector for skilled personnel, exacerbating an already acute demographic crunch.<o:p></o:p>

The shortage of workers in Russia's oil and gas industry is not a recent phenomenon but has been aggravated by the prolonged conflict in Ukraine. <o:p></o:p>

Over the past two decades, Russia has grappled with a shrinking working-age population, initially pushed by low birth rates in the 1990s and worsened by the COVID-19 pandemic.<o:p></o:p>

The invasion of Ukraine has further restricted the influx of labour from abroad due to international sanctions, diminishing Russia's attractiveness for migrants from neighbouring countries.<o:p></o:p>

According to estimates, the oil and gas sector currently faces a deficit of around 40,000 employees, with demand spanning from low-skilled workers to highly qualified professionals.<o:p></o:p>

Despite offering salaries exceeding the national average by a significant margin, energy companies struggle to compete with the lucrative contracts offered by the military and defence industry. <o:p></o:p>

The attractiveness of sign-up bonuses and additional incentives has drawn potential recruits away from the oil fields.<o:p></o:p>

As the conflict continues, Russia's oil and gas industry struggles with the implications of labour scarcity on its long-term viability. <o:p></o:p>

While production and exports have remained strong so far, concerns loom over the sector's ability to sustain its performance amidst ongoing sanctions and geopolitical tensions.<o:p></o:p>

The lack of qualified personnel poses a challenge, hindering the industry's capacity to innovate and adapt to evolving technological demands.<o:p></o:p>

To mitigate the labour shortage, oil and gas companies have implemented various incentives and perks to attract workers, including subsidised meals, medical benefits, and corporate-sponsored outings.<o:p></o:p>

However, these measures have had limited success in attracting the younger, skilled workforce crucial for the industry's future. <o:p></o:p>

Consequently, companies are increasingly relying on older workers to fill the gaps, abandoning previous retirement incentives in favour of retaining experienced personnel.<o:p></o:p>

Despite facing mounting challenges, Russia's oil and gas sector remains a key player in financing the ongoing conflict in Ukraine. <o:p></o:p>

The industry's strength, along with high production rates, has sustained the Kremlin's ability to fund military operations and procure weapons.<o:p></o:p>

However, the looming threat of labour shortages and limited access to Western technology pose significant risks to the sector's long-term stability.<o:p></o:p>

(With inputs from Bloomberg)<o:p></o:p>

As Russia’s military involvement in Ukraine continues, the country’s oil and gas sector is struggling with a severe shortage of workers, threatening its ability to sustain operations and innovate, Bloomberg News reported.

As Russia’s military involvement in Ukraine continues, the country’s oil and gas sector is struggling with a severe shortage of workers, threatening its ability to sustain operations and innovate, Bloomberg News reported. The escalating conflict has complicated the longstanding demographic challenges, driving labour scarcity across various sectors of the economy. Despite offering competitive salaries and incentives, energy companies struggle to attract talent amidst stiff competition from the military and arms manufacturers. This scarcity raises concerns about the industry's capacity to maintain its crucial role in funding the war and sustaining economic stability. Russia's oil and gas industry, the basis of the nation's economy, faces a dire manpower shortage amidst the ongoing conflict in Ukraine. The sector, instrumental in financing Russia's military activities, confronts challenges in recruitment and retention as the demands of war strain the workforce. With the nation's economy fully mobilised for war, the energy industry competes fiercely with the military and defence sector for skilled personnel, exacerbating an already acute demographic crunch. The shortage of workers in Russia's oil and gas industry is not a recent phenomenon but has been aggravated by the prolonged conflict in Ukraine. Over the past two decades, Russia has grappled with a shrinking working-age population, initially pushed by low birth rates in the 1990s and worsened by the COVID-19 pandemic. The invasion of Ukraine has further restricted the influx of labour from abroad due to international sanctions, diminishing Russia's attractiveness for migrants from neighbouring countries. According to estimates, the oil and gas sector currently faces a deficit of around 40,000 employees, with demand spanning from low-skilled workers to highly qualified professionals. Despite offering salaries exceeding the national average by a significant margin, energy companies struggle to compete with the lucrative contracts offered by the military and defence industry. The attractiveness of sign-up bonuses and additional incentives has drawn potential recruits away from the oil fields. As the conflict continues, Russia's oil and gas industry struggles with the implications of labour scarcity on its long-term viability. While production and exports have remained strong so far, concerns loom over the sector's ability to sustain its performance amidst ongoing sanctions and geopolitical tensions. The lack of qualified personnel poses a challenge, hindering the industry's capacity to innovate and adapt to evolving technological demands. To mitigate the labour shortage, oil and gas companies have implemented various incentives and perks to attract workers, including subsidised meals, medical benefits, and corporate-sponsored outings. However, these measures have had limited success in attracting the younger, skilled workforce crucial for the industry's future. Consequently, companies are increasingly relying on older workers to fill the gaps, abandoning previous retirement incentives in favour of retaining experienced personnel. Despite facing mounting challenges, Russia's oil and gas sector remains a key player in financing the ongoing conflict in Ukraine. The industry's strength, along with high production rates, has sustained the Kremlin's ability to fund military operations and procure weapons. However, the looming threat of labour shortages and limited access to Western technology pose significant risks to the sector's long-term stability. (With inputs from Bloomberg)

Russia's oil industry faces manpower crisis amid war economy: Report

Russia's seaborne crude exports surged in the final week of march, reaching their highest level in 2024. This comes despite russia agreeing to cut exports as part of an OPEC+ deal to support oil prices. The increase is attributed to easing winds that had previously hampered shipments.

Russia's seaborne crude exports surge to highest level in 2024

Russia witnessed a surge in oil and gas revenue in February, with proceeds exceeding $10 billion, representing an increase of over 80 per cent compared to the previous year.<o:p></o:p>

According to a Bloomberg report, the surge in revenue was attributed to soaring prices for Russian crude, despite enduring Western sanctions targeting the nation's energy sector.<o:p></o:p>

The average price of $65 per barrel for Urals, Russia's primary export blend was used to compute the oil taxes. Compared to a year ago, that was less than $50.

Taxes on crude and petroleum products, constituting 84 per cent of total hydrocarbon revenues, more than doubled, according to calculations made by Bloomberg based on official data.<o:p></o:p>

Russia's oil and gas sectors serve as crucial revenue sources for the nation, particularly amid rising military expenditures associated with Moscow's involvement in Ukraine. <o:p></o:p>

Despite the economic pressures and sanctions, Russia's ability to bolster its energy revenues underscores the resilience of its energy industry amid geopolitical challenges.<o:p></o:p>

Western sanctions imposed to curb Russia's oil revenues have seen varying degrees of effectiveness. <o:p></o:p>

While the European Union and the Group of Seven nations imposed restrictions on crude imports and imposed price caps on Russian oil cargoes, Moscow has leveraged alternative strategies to mitigate the impact, including the utilisation of a shadow fleet of tankers and collaboration with non-Western buyers and intermediaries.<o:p></o:p>

In response to sanctions and fluctuating oil prices, Russia has implemented measures to safeguard its budgetary cash flows, including the activation of a "price floor mechanism." <o:p></o:p>

This mechanism ensures that producers pay taxes based on an artificial discount for Urals crude, shielding budget revenues from potential price fluctuations.<o:p></o:p>

Additionally, Russia's adjustments in taxation policies, including reductions in export duties on crude and oil products along with increases in the oil-extraction tax, have contributed to strengthening revenue from the oil-production tax. <o:p></o:p>

These fiscal measures have enabled Russia to maintain stability in its energy revenue streams amid evolving market conditions.<o:p></o:p>

Moreover, Russia allocated subsidies to its oil processors in February for domestic sales of diesel and gasoline, indicating a multifaceted approach to stabilise the energy sector and ensure market stability. <o:p></o:p>

(With inputs from Bloomberg)<o:p></o:p>

Russia witnessed a surge in oil and gas revenue in February, with proceeds exceeding $10 billion, representing an increase of over 80 per cent compared to the previous year.

Russia witnessed a surge in oil and gas revenue in February, with proceeds exceeding $10 billion, representing an increase of over 80 per cent compared to the previous year. According to a Bloomberg report, the surge in revenue was attributed to soaring prices for Russian crude, despite enduring Western sanctions targeting the nation's energy sector. The average price of $65 per barrel for Urals, Russia's primary export blend was used to compute the oil taxes. Compared to a year ago, that was less than $50. Taxes on crude and petroleum products, constituting 84 per cent of total hydrocarbon revenues, more than doubled, according to calculations made by Bloomberg based on official data. Russia's oil and gas sectors serve as crucial revenue sources for the nation, particularly amid rising military expenditures associated with Moscow's involvement in Ukraine. Despite the economic pressures and sanctions, Russia's ability to bolster its energy revenues underscores the resilience of its energy industry amid geopolitical challenges. Western sanctions imposed to curb Russia's oil revenues have seen varying degrees of effectiveness. While the European Union and the Group of Seven nations imposed restrictions on crude imports and imposed price caps on Russian oil cargoes, Moscow has leveraged alternative strategies to mitigate the impact, including the utilisation of a shadow fleet of tankers and collaboration with non-Western buyers and intermediaries. In response to sanctions and fluctuating oil prices, Russia has implemented measures to safeguard its budgetary cash flows, including the activation of a "price floor mechanism." This mechanism ensures that producers pay taxes based on an artificial discount for Urals crude, shielding budget revenues from potential price fluctuations. Additionally, Russia's adjustments in taxation policies, including reductions in export duties on crude and oil products along with increases in the oil-extraction tax, have contributed to strengthening revenue from the oil-production tax. These fiscal measures have enabled Russia to maintain stability in its energy revenue streams amid evolving market conditions. Moreover, Russia allocated subsidies to its oil processors in February for domestic sales of diesel and gasoline, indicating a multifaceted approach to stabilise the energy sector and ensure market stability. (With inputs from Bloomberg)

Russia's oil and gas revenue surges, providing budget boost amid sanctions

In the intricate world of global oil trade, a profound transformation is unfolding, challenging the longstanding dominance of the U.S. dollar. Recent geopolitical tensions surrounding the Ukraine conflict have intensified this shift, leading to a clash between Russia and India over oil payments.

The Petro-Dollar era unravelled

The U.S. dollar has been the undisputed currency in international oil transactions for decades. However, as Western sanctions gripped Russia in response to the Ukraine conflict, Moscow began steering away from the dollar and euro. Currently, less than 10 per cent&nbsp;of Russia's daily oil output is sold in these dominant currencies. The Russian central bank, restricted by sanctions, faces challenges in dollar operations, prompting a strategic shift in how Russia engages in global trade.

Pivot to India

Amid this shift, India emerged as a pivotal player, becoming Russia's largest buyer of seaborne oil. In a bold move, India insisted on paying for oil in rupees, disrupting established norms. However, this stance faced resistance, as the Russian central bank provided informal guidance against accepting the Indian currency. The resulting standoff almost derailed crucial trading activities, revealing the complexities that arise when traditional powers navigate new and assertive players.

Seeking alternatives amid sanctions

As Moscow faces limited access to the international banking system due to sanctions, Russian oil executives sought alternative currencies to facilitate transactions. The challenge lies in finding a viable substitute for the dollar, a quest that has implications not only for Russia and India but also for other key players such as buyers in Africa, China, and Turkey – all significant purchasers of Russian oil.

The Yuan factor and diplomatic sensitivities

Russian officials and oil executives, pressed by the limitations on the dollar, advocated for transactions in the Chinese yuan. While advantageous for Russia, this proposition faced resistance from India, given the sensitive nature of using the currency of a regional rival. The complexity deepened as Indian state refiners turned to the UAE dirham, introducing additional clearing requirements amidst Washington's tightened stance on enforcing price caps.

The story takes a dramatic turn as at least two major Russian oil companies threatened to redirect tankers carrying millions of tonnes of oil away from India. This move underscored the severity of the clash and the challenges in finding swift solutions. With Washington imposing sanctions on owners of tankers carrying Russian oil, the situation escalates, leaving a cloud of uncertainty over the future dynamics of global oil trade.

Bottomline

This exploration into the clash between Russia and India over oil payments unveils a narrative that goes beyond economic transactions. It reflects geopolitical shifts, the impact of sanctions, and the delicate dance between established and emerging players in the ever-evolving global trade landscape. As we witness the consequences of this clash reverberating across markets, one thing becomes clear – the tides of the global oil trade are shifting, and the implications are profound.

In the intricate world of global oil trade, a profound transformation is unfolding, challenging the longstanding dominance of the U.S. dollar. Recent geopolitical tensions surrounding the Ukraine conflict have intensified this shift, leading to a clash between Russia and India over oil payments.

In the intricate world of global oil trade, a profound transformation is unfolding, challenging the longstanding dominance of the U.S. dollar. Recent geopolitical tensions surrounding the Ukraine conflict have intensified this shift, leading to a clash between Russia and India over oil payments. The Petro-Dollar era unravelled The U.S. dollar has been the undisputed currency in international oil transactions for decades. However, as Western sanctions gripped Russia in response to the Ukraine conflict, Moscow began steering away from the dollar and euro. Currently, less than 10 per cent of Russia's daily oil output is sold in these dominant currencies. The Russian central bank, restricted by sanctions, faces challenges in dollar operations, prompting a strategic shift in how Russia engages in global trade. Pivot to India Amid this shift, India emerged as a pivotal player, becoming Russia's largest buyer of seaborne oil. In a bold move, India insisted on paying for oil in rupees, disrupting established norms. However, this stance faced resistance, as the Russian central bank provided informal guidance against accepting the Indian currency. The resulting standoff almost derailed crucial trading activities, revealing the complexities that arise when traditional powers navigate new and assertive players. Seeking alternatives amid sanctions As Moscow faces limited access to the international banking system due to sanctions, Russian oil executives sought alternative currencies to facilitate transactions. The challenge lies in finding a viable substitute for the dollar, a quest that has implications not only for Russia and India but also for other key players such as buyers in Africa, China, and Turkey – all significant purchasers of Russian oil. The Yuan factor and diplomatic sensitivities Russian officials and oil executives, pressed by the limitations on the dollar, advocated for transactions in the Chinese yuan. While advantageous for Russia, this proposition faced resistance from India, given the sensitive nature of using the currency of a regional rival. The complexity deepened as Indian state refiners turned to the UAE dirham, introducing additional clearing requirements amidst Washington's tightened stance on enforcing price caps. The story takes a dramatic turn as at least two major Russian oil companies threatened to redirect tankers carrying millions of tonnes of oil away from India. This move underscored the severity of the clash and the challenges in finding swift solutions. With Washington imposing sanctions on owners of tankers carrying Russian oil, the situation escalates, leaving a cloud of uncertainty over the future dynamics of global oil trade. Bottomline This exploration into the clash between Russia and India over oil payments unveils a narrative that goes beyond economic transactions. It reflects geopolitical shifts, the impact of sanctions, and the delicate dance between established and emerging players in the ever-evolving global trade landscape. As we witness the consequences of this clash reverberating across markets, one thing becomes clear – the tides of the global oil trade are shifting, and the implications are profound.

Oil's new currency landscape: Russia's struggle beyond the dollar

In a strategic shift, India has managed to save $2.7 billion by opting for discounted Russian oil. This move not only supports India's economic growth but also eases the pressure on its trade deficit. India, the world's third-largest oil importer and consumer, has managed to surpass Europe as the largest buyer of Russian crude this year. This shift comes in the aftermath of western sanctions on Moscow due to its invasion of Ukraine.

Russia tops India's oil suppliers | World DNA

Russia is making waves in the global oil market as it sells oil to India at nearly 80 dollars per barrel, a significant premium over western prices. This surge in prices is primarily driven by tight global oil markets and production cuts by key OPEC+ producers, including Russia and Saudi Arabia. As of mid-July, Urals crude has consistently traded above the western price cap of 60 dollars per barrel.

Russian oil sales surge in India

Russia, one of the world's largest oil producers, is encountering&nbsp;fuel shortages, which may be critical for harvesting in some regions of its southern breadbasket. The situation is expected to worsen in the coming months, as per a&nbsp;Reuters report.

According to traders, the gasoline market has been impacted by a number of issues, including oil refinery maintenance, train infrastructure delays, and a lower ruble, which encourages fuel exports.

Russia has attempted to address diesel and petrol shortages in recent months, considering export restrictions as a last-ditch effort to avoid a significant fuel crisis, which is sensitive for the Kremlin ahead of a presidential election in March.

Moreover, the government's plan to reduce refinery subsidies is likely to impair fuel supply in the world's largest grain exporter. Regional oil product depots in Russia's southern regions have been compelled to reduce or even cease gasoline supplies, while retail filling stations have been obliged to limit client fuel sales quantities.

"Ai-92 petrol is not available for retail sales in the Krasnodar region, Adygea, and Astrakhan, and Ai-95 petrol and diesel are scarce," a dealer in Russia's south told Reuters.

Another trader stated that there have been no diesel sales at oil depots and no fuel on retail markets in the whole Samara area, which is located in the Volga River region, for the second week in a row.

On Wednesday, Russian Deputy Prime Minister Alexander Novak stated that there are no gasoline shortages. However, he also stated that the government was working on steps to assure a consistent supply on the domestic market, such as raising mandated sales on exchanges and restricting the number of exporters.

Russian oil supply crunch

The energy ministry announced last week that Russia's oil product output completely matched current fuel demand, despite the diversion of certain petrol and diesel exports to the domestic market and the use of reserves.

Earlier this month, the energy ministry asked oil firms find strategies to limit wholesale gasoline price increases in rural regions.

According to a statement, certain supply challenges have emerged as a result of excessive congestion on trains in southern Russia during the vacation season. Russian Railways said that it is in talks with oil producers to resolve the difficulties. It also told Reuters that fuel supply to southern regions through trains is not dependent on increased passenger traffic.&nbsp;

According to industry insiders, the situation will improve no sooner than October, when several oil refineries will complete their maintenance, while seasonal demand will fall.

(Inputs form Reuters)

Russia, one of the world's largest oil producers, is encountering fuel shortages, which may be critical for harvesting in some regions of its southern breadbasket.

Russia, one of the world's largest oil producers, is encountering fuel shortages, which may be critical for harvesting in some regions of its southern breadbasket. The situation is expected to worsen in the coming months, as per a Reuters report. According to traders, the gasoline market has been impacted by a number of issues, including oil refinery maintenance, train infrastructure delays, and a lower ruble, which encourages fuel exports. Russia has attempted to address diesel and petrol shortages in recent months, considering export restrictions as a last-ditch effort to avoid a significant fuel crisis, which is sensitive for the Kremlin ahead of a presidential election in March. Moreover, the government's plan to reduce refinery subsidies is likely to impair fuel supply in the world's largest grain exporter. Regional oil product depots in Russia's southern regions have been compelled to reduce or even cease gasoline supplies, while retail filling stations have been obliged to limit client fuel sales quantities. "Ai-92 petrol is not available for retail sales in the Krasnodar region, Adygea, and Astrakhan, and Ai-95 petrol and diesel are scarce," a dealer in Russia's south told Reuters. Another trader stated that there have been no diesel sales at oil depots and no fuel on retail markets in the whole Samara area, which is located in the Volga River region, for the second week in a row. On Wednesday, Russian Deputy Prime Minister Alexander Novak stated that there are no gasoline shortages. However, he also stated that the government was working on steps to assure a consistent supply on the domestic market, such as raising mandated sales on exchanges and restricting the number of exporters. Russian oil supply crunch The energy ministry announced last week that Russia's oil product output completely matched current fuel demand, despite the diversion of certain petrol and diesel exports to the domestic market and the use of reserves. Earlier this month, the energy ministry asked oil firms find strategies to limit wholesale gasoline price increases in rural regions. According to a statement, certain supply challenges have emerged as a result of excessive congestion on trains in southern Russia during the vacation season. Russian Railways said that it is in talks with oil producers to resolve the difficulties. It also told Reuters that fuel supply to southern regions through trains is not dependent on increased passenger traffic. According to industry insiders, the situation will improve no sooner than October, when several oil refineries will complete their maintenance, while seasonal demand will fall. (Inputs form Reuters)

Domestic fuel shortages grip Russia, more challenges ahead

In a bold move, Indian refiners have managed to save a staggering $7 billion in foreign exchange by ramping up their purchases of discounted Russian crude oil. As western buyers reduced imports from Russia due to the conflict in Ukraine, Moscow began offering attractive discounts on its crude. Indian refiners seized this opportunity, leading to remarkable savings.

Indian refiners save $7 bn on Russian crude | World Business Watch

Amid the bursting inflation crisis in Pakistan, Russia has come to its rescue and sent the first shipment of crude oil to the cash-strapped nation. The Pakistan authorities welcomed the ship on the Karachi port, country's main hub of imports.

First shipment of oil from Russia reaches Karachi port in Pakistan

India's import of cheap Russian oil reached a new high in may, surpassing the combined purchases from Saudi Arabia, Iraq, the United Arab emirates, and the United States. According to data from energy cargo tracker Vortexa, India took 1.96 million barrels per day from Russia in may, 15% more than the previous high in April.

India's imports of Russian oil hits new high | World Business Watch

India's import of cheap Russian oil reached a new high, according to a data by Energy Cargo Tracker - India took 1.96 million barrels per day in May from Russia - in May 15% more than the previous high that was recorded back in April.

India guzzles Russian crude: India's imports of Russian oil hits new high

Chinese and Indian imports of Russian crude oil soared to record levels in May, as buyers took advantage of discounted supplies, a Reuters report said.&nbsp;

India and China imported around 110 million barrels in May, which was an increase of nearly 10 percent from the previous month, despite warnings from the United States against evading price caps. India and China are the world's top two crude importers and major buyers of Russian oil.&nbsp;

Data indicates that India imported a record-breaking 66.7 million barrels of Russian oil in May, while Chinese imports increased to 49.2 million barrels.

The surge in Russian oil shipments comes just ahead of the meeting between the Organization of the Petroleum Exporting Countries (OPEC) and their allies, including Russia, on June 4.

Despite a 5 percent drop in Brent Futures this week, which currently stands at approximately $73 per barrel, producers are unlikely to deepen supply cuts at the upcoming OPEC+ meeting, sources told Reuters.&nbsp;

Indian refiners have increased their purchases of medium sour crude such as Urals, as well as lighter grades like Sokol and Varandey, alongside a steady flow of Espo crude from the Pacific port of Kozmino.&nbsp;

In China, refiners are striving to reduce feedstock costs and improve refining margins amid a slower-than-expected economic recovery. Private Chinese oil refiners began purchasing Russian oil earlier this year and have steadily increased their volumes in recent months.

The increased demand from Chinese buyers is attributed to higher profits on supplies due to softer freight rates and stronger differentials. Freight rates for tankers carrying Espo crude from Kozmino to northern China have decreased to $2.2 million, after reaching an all-time high of $2.4 million in mid-March.&nbsp;

(With inputs from Reuters)

Chinese and Indian imports of Russian crude oil soared to record levels in May, as buyers took advantage of discounted supplies, a Reuters report said. India and China imported around 110 million barrels in May, which was an increase of nearly 10 percent from the previous month, despite warnings from the United States against evading price caps.

Chinese and Indian imports of Russian crude oil soared to record levels in May, as buyers took advantage of discounted supplies, a Reuters report said. India and China imported around 110 million barrels in May, which was an increase of nearly 10 percent from the previous month, despite warnings from the United States against evading price caps. India and China are the world's top two crude importers and major buyers of Russian oil. Data indicates that India imported a record-breaking 66.7 million barrels of Russian oil in May, while Chinese imports increased to 49.2 million barrels. The surge in Russian oil shipments comes just ahead of the meeting between the Organization of the Petroleum Exporting Countries (OPEC) and their allies, including Russia, on June 4. Despite a 5 percent drop in Brent Futures this week, which currently stands at approximately $73 per barrel, producers are unlikely to deepen supply cuts at the upcoming OPEC+ meeting, sources told Reuters. Indian refiners have increased their purchases of medium sour crude such as Urals, as well as lighter grades like Sokol and Varandey, alongside a steady flow of Espo crude from the Pacific port of Kozmino. In China, refiners are striving to reduce feedstock costs and improve refining margins amid a slower-than-expected economic recovery. Private Chinese oil refiners began purchasing Russian oil earlier this year and have steadily increased their volumes in recent months. The increased demand from Chinese buyers is attributed to higher profits on supplies due to softer freight rates and stronger differentials. Freight rates for tankers carrying Espo crude from Kozmino to northern China have decreased to $2.2 million, after reaching an all-time high of $2.4 million in mid-March. (With inputs from Reuters)

110 million barrels and counting: Russian oil imports from India and China surge in May

India and China have unleashed their hunger for Russian oil, sending import levels skyrocketing to unprecedented levels. the oil-hungry Asian giants are gobbling up discounted supplies, leaving West Asia and Africa in the dust. A Reuters report suggests India, has taken its hunger for Russian oil to the next level. It has bought a jaw dropping record of 66.7 million barrels in may alone!

India's oil purchase from Russia breaches new high

Russian President Vladimir Putin on Wednesday said the country decided to cut crude production to support global oil prices. Speaking during a government meeting, Putin also assured the world that the oil situation remains stable.

"All our actions, including those related to voluntary production cuts, are connected with the need to support a certain price environment on global markets in contact with our partners in OPEC+," media reports quoted Putin as saying.&nbsp;

Russia, one of the largest oil producers, had&nbsp;promised to reduce its crude production by 500,000 barrels per&nbsp;day in March&nbsp;and maintain the same production levels&nbsp;for the rest of the year, as per a Bloomberg report.&nbsp;

"We are reducing production, but nevertheless it is at the required level," Putin added.&nbsp;

While Moscow had argued that the production cut was in retaliation to the Western sanctions, Putin's latest statement only complicates the real intention of the move.&nbsp;

The United States and Europe have accused Russia of weaponising energy to contain the West in its drive to weaken Moscow's military campaign in Ukraine.

Moscow, on the other hand, has accused the West of weaponising the dollar and financial systems such as the international payments mechanism SWIFT against Russia.

Nevertheless, market watchers have been skeptical about the level of Moscow's oil production cuts.&nbsp;

While Russia on Wednesday said it has reached the pledged curbs this month, the International Energy Agency (IEA), the energy watchdog, argued that Russia needs to cut its production by 300,000 barrels a day to reach the target this month.

“Indeed, Russia may be boosting volumes to make up for lost revenue,” a Bloomberg report quoted IEA as saying.

Last week, oil pricing benchmarks fell for a fourth consecutive week, the longest streak of weekly declines since September 2022, over fears of a US&nbsp;recession and risks of a historic default on government debt in early June. The price of Russian Urals flagship oil blend, denominated in roubles, fell&nbsp;below the breakeven level assumed for this year's federal budget, exacerbating already huge shortfall in the state coffers.

(With agency inputs)

Russian President Vladimir Putin on Wednesday said the country decided to cut crude production to support global oil prices. Speaking during a government meeting, Putin also assured the world that the oil situation remains stable.

Russian President Vladimir Putin on Wednesday said the country decided to cut crude production to support global oil prices. Speaking during a government meeting, Putin also assured the world that the oil situation remains stable. "All our actions, including those related to voluntary production cuts, are connected with the need to support a certain price environment on global markets in contact with our partners in OPEC+," media reports quoted Putin as saying. Russia, one of the largest oil producers, had promised to reduce its crude production by 500,000 barrels per day in March and maintain the same production levels for the rest of the year, as per a Bloomberg report. "We are reducing production, but nevertheless it is at the required level," Putin added. While Moscow had argued that the production cut was in retaliation to the Western sanctions, Putin's latest statement only complicates the real intention of the move. The United States and Europe have accused Russia of weaponising energy to contain the West in its drive to weaken Moscow's military campaign in Ukraine. Moscow, on the other hand, has accused the West of weaponising the dollar and financial systems such as the international payments mechanism SWIFT against Russia. Nevertheless, market watchers have been skeptical about the level of Moscow's oil production cuts. While Russia on Wednesday said it has reached the pledged curbs this month, the International Energy Agency (IEA), the energy watchdog, argued that Russia needs to cut its production by 300,000 barrels a day to reach the target this month. “Indeed, Russia may be boosting volumes to make up for lost revenue,” a Bloomberg report quoted IEA as saying. Last week, oil pricing benchmarks fell for a fourth consecutive week, the longest streak of weekly declines since September 2022, over fears of a US recession and risks of a historic default on government debt in early June. The price of Russian Urals flagship oil blend, denominated in roubles, fell below the breakeven level assumed for this year's federal budget, exacerbating already huge shortfall in the state coffers. (With agency inputs)

'Situation stable': Vladimir Putin backs Russia's oil production cuts

India's Bank of Baroda has stopped clearing payments for Russian oil sold above the price cap set by the West. This is according to media sources that suggests that the move could expedite the process of paying for Russian oil in Indian rupees.

Indian bank adheres to sanctions on Russia

It was pretty surprising for political observers when Indian Prime Minister Narendra Modi told Russian President Vladimir Putin that it was not a good time for war with Ukraine. Much of the Western press, and even the Biden administration, interpreted it as another example of Putin's isolation. Yet, India remains one of the buyers of energy from Russia. But now, there is a twist to the tale: Russia is reportedly in talks with Pakistan for oil imports, that too on deferred payment basis, something that would help the cash-strapped South Asian neighbour of India.

According to Pakistani newspaper Express Tribune, Islamabad is in talks with Russia regarding the possibility of importing oil on deferred payment.

Prime Minister Shehbaz Sharif had three meetings with Putin on the sidelines of the Shanghai Cooperation Organisation (SCO) summit in Uzbekistan’s Samarkand city, which concluded last week. Modi had made the remarks on Ukraine war at the same platform.

“One was formal and the rest were informal,” said the official, who was part of the prime minister’s delegation.

“What we have discussed during the recent interaction with the Russian side is the possibility of importing oil on deferred payment,” the official said. He further said that Moscow has shown inclination to consider the proposal, PTI reported quoting the newspaper.

If the proposal materialises, it will be a landmark development given that Pakistan imports oil from Gulf countries. In the past, Saudi Arabia and UAE supplied oil to Pakistan on deferred payment.

However, it is not clear if the government can pursue the option given the likely opposition from the United States.

A source in the foreign office disclosed that the US has never explicitly asked Pakistan not to import oil from Russia but “advised us that it is better if we don’t enter into such a venture with Russia”, the report said. 
&nbsp;

(With inputs from agencies)

&nbsp;

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It was pretty surprising for political observers when Indian Prime Minister Narendra Modi told Russian President Vladimir Putin that it was not a good time for war with Ukraine.

It was pretty surprising for political observers when Indian Prime Minister Narendra Modi told Russian President Vladimir Putin that it was not a good time for war with Ukraine. Much of the Western press, and even the Biden administration, interpreted it as another example of Putin's isolation. Yet, India remains one of the buyers of energy from Russia. But now, there is a twist to the tale: Russia is reportedly in talks with Pakistan for oil imports, that too on deferred payment basis, something that would help the cash-strapped South Asian neighbour of India. According to Pakistani newspaper Express Tribune, Islamabad is in talks with Russia regarding the possibility of importing oil on deferred payment. Prime Minister Shehbaz Sharif had three meetings with Putin on the sidelines of the Shanghai Cooperation Organisation (SCO) summit in Uzbekistan’s Samarkand city, which concluded last week. Modi had made the remarks on Ukraine war at the same platform. “One was formal and the rest were informal,” said the official, who was part of the prime minister’s delegation. “What we have discussed during the recent interaction with the Russian side is the possibility of importing oil on deferred payment,” the official said. He further said that Moscow has shown inclination to consider the proposal, PTI reported quoting the newspaper. If the proposal materialises, it will be a landmark development given that Pakistan imports oil from Gulf countries. In the past, Saudi Arabia and UAE supplied oil to Pakistan on deferred payment. However, it is not clear if the government can pursue the option given the likely opposition from the United States. A source in the foreign office disclosed that the US has never explicitly asked Pakistan not to import oil from Russia but “advised us that it is better if we don’t enter into such a venture with Russia”, the report said. (With inputs from agencies)

A hint to India? Pak-Russia discuss Russian oil imports on deferred payment basis, say reports

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