Amidst the turmoil in the global energy market, a relief news has emerged for India. America has extended the exemption on Russian oil purchases by one month. This decision has been taken at a time when earlier indications were given not to extend this relaxation. Now this step is being considered as a big U-turn of the Trump administration.
Discount extended till 16th May
The US Treasury Department issued a new license late at night and said that now countries will be allowed to buy Russian oil loaded by sea route till May 16. Earlier this exemption had ended on April 11. However, this license does not cover any transactions related to Iran, Cuba and North Korea. The purpose of this decision is to control rising energy prices globally, especially at a time when tensions in West Asia are at their peak. Earlier, America had given temporary relief to some countries including India to buy Russian oil from March 5. Later this exemption was extended to other countries also, the period of which ended on 11 April.
How will India benefit?
This decision will make it easier for India to buy crude oil from Russia. India is already importing oil from Russia on a large scale. Russian Ambassador to India Denis Alipov has assured that Russia will further increase the supply of crude oil, LPG and LNG to India. He described India as a reliable partner.
According to data from a European think tank, India’s crude oil imports from Russia have increased rapidly in March. According to the report of the Center for Research on Energy and Clean Air (CREA), India bought crude oil worth $ 5.8 billion from Russia in March, which is more than three times compared to $ 1.54 billion in February. Since March 2022, New Delhi has emerged as a major market for Russian oil. In 2024, India will buy about 2 million barrels of oil per day from Russia, compared to imports worth about $44 billion last year.
Displeasure of American lawmakers
However, some American lawmakers have expressed strong displeasure over this decision of America. Treasury Secretary Scott Besant had earlier said the US would not renew waivers for Russian oil. Lawmakers argued that such exemptions could benefit the economies of countries like Iran and Russia, especially since Russia is involved in the war against Ukraine.