US extends sanctions waiver for Russian crude again: How will this impact India amid fuel crisis?
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How will this impact India amid probable fuel crisis? Photograph: (AI)
The US extended for 30 days a sanctions waiver allowing purchases of Russian seaborne oil, citing support for “energy-vulnerable” countries amid the Iran war. The move eases pressure on India, allowing refiners to continue Russian crude imports
The United States on Monday (May 18) announced another 30-day extension of a sanctions waiver allowing purchases of Russian seaborne oil, reversing plans not to grant an extension. US Treasury Secretary Scott Bessent said that the decison was taken to aid "energy-vulnerable" countries hit by the Iran war,
In a post on X, Bessent said that the Treasury was issuing the 30-day general license after a previous waiver lapsed on Saturday. This will allow temporary access to Russian oil and petroleum products stranded on tankers without violating severe US sanctions on Russian oil majors. Bessent had earlier said that there would be no further extension of the Russian oil sanctions waiver was planned. The action marks the second time the Treasury has allowed the sanctions waiver to lapse and subsequently extended it.
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How will this impact India amid probable fuel crisis?
Interestingly, India on Monday had said that it had been buying Moscow’s crude irrespective of the US waiver, and would continue to do so. Thus, the waiver now makes it easier for Indian refiners to continue with their heavy imports of Russian oil. “Regarding the American waiver on Russia, I would like to emphasise that we have been purchasing from Russia earlier, before waiver also, during waiver also, and now also. So, it is basically the commercial sense, which should be there for the OMCs (oil marketing companies) to purchase (Russian oil),” Petroleum Ministry Joint Secretary Sujata Sharma had said.
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Without the waiver, Indian refiners wouldn’t have been able to take deliveries of Russian crude on sanctioned tankers or deal with Russian oil suppliers sanctioned by Washington, as that would have exposed them to the risk of attracting secondary sanctions from the US. According to reports, the quantity of India buying Russian crude has reduced notably as Iran war began. This was after US imposed sanctions on Rosneft and Lukoil and subsequent US-India tariff deal.
In short, India that has hiked fuel prices by around Rs 3 recently after almost in four years, will temporarily escape the double squeeze of constraints in oil flows due to Hormuz blockage as well as Russian oil sanctions.
