Relief news for India: America extended one month exemption on Russian oil purchase, Trump administration’s U-turn!

Washington: India has got a big relief amid increasing instability in the global energy market and tensions in the Middle East. The US Treasury Department has extended the temporary exemption from sanctions on the purchase of Russian oil for one month. This decision has come at a time when a few days ago indications were given not to extend this exemption. Now this is being considered as a clear U-turn of the Trump administration.

Till when was the exemption extended?

The US Treasury Department issued a new general license late last night, allowing purchases of Russian crude and petroleum products loaded on ships on or before April 17 until May 16. Earlier this exemption had ended on April 11.

The new license does not cover any transactions involving Iran, Cuba and North Korea. This exemption is applicable only to oil already loaded by sea route.

Why was this decision taken?

The main objective of this move is to keep energy prices under control globally, especially due to the ongoing tensions and supply disruptions in West Asia. Earlier in March, America had given temporary relief of 30 days to some countries including India to buy Russian oil, which has now been extended.

What will be the benefit to India?

This decision will prove to be especially beneficial for India as the country is already importing cheap crude oil from Russia on a large scale. Russia’s Ambassador to India has also expressed confidence that Russia will further increase the supply of oil, LPG and LNG to India.

According to data, India’s import of crude oil from Russia increased more than three times to $5.8 billion in March. In the year 2024, India purchased an average of 2 million barrels of oil per day from Russia, which was worth around $ 44 billion. With this exemption, there will be no disruption in the supply chain to Indian refineries and oil prices will also be controlled, which will have a direct impact on the general public.

Displeasure among American lawmakers

However, some US lawmakers have reacted sharply to this decision. Treasury Secretary Scott Besant had said just days earlier that the exemption would not be renewed. Lawmakers say such relief could strengthen the economies of countries like Russia and Iran, while Russia is engaged in the Ukraine conflict.