Even though the Strait of Hormuz has been opened, the oil and gas crisis is still very deep all over the world. Meanwhile, India has received very good news on Russian oil. America has further extended the discount for buying Russian oil by one month. US President Donald Trump’s administration on Friday issued a waiver allowing India and other countries to buy Russian oil and petroleum products at sea for about a month, Reuters reported. This step has been taken with the aim of controlling global energy prices, which had increased significantly during the US-Israel war on Iran.
Discount extended till 16th May
The US Treasury Department posted this license on its website late Friday night. Under this, countries have been allowed to buy Russian oil loaded on ships from Friday to May 16. The license is part of the administration’s effort to control global energy prices—prices that have soared during the US-Israel war over Iran. This license replaces a 30-day grace period that expired on April 11. This does not include transactions related to Iran, Cuba and North Korea.
India had raised the issue
The issue of increasing this exemption for imports came up for discussion during the recent visit of the Foreign Secretary of India to America. It is learned that India was in talks with the US to increase the rebate on Russian oil imports due to disruptions in the supply chain after the war in West Asia. The extension comes two days after Treasury Secretary Scott Besant said Washington would not renew a waiver that allowed countries to buy Russian oil without facing US sanctions.
There may be an increase in supply
Kirill Dmitriev, special envoy of the Russian President, had said that the first exemption would free up the supply of 100 million barrels of Russian crude oil, which is almost equal to one day’s global production. Although this relief from sanctions may lead to a temporary increase in oil supply around the world, it has failed to stop the rise in petroleum prices. This surge in prices has come due to the partial closure of the ‘Strait of Hormuz’. Before the war, about 20 percent of the world’s oil and gas was transported daily through this strait. These exemptions could complicate Western efforts to deprive Russia of revenues for the Ukraine war, and also put Washington at odds with its own allies.
Russia will increase supplies to India
Meanwhile, Russia’s Ambassador to India in New Delhi, Denis Alipov, has assured that Russia will increase energy exports to India, including crude oil, LPG and LNG. According to Alipov, Russia has significantly increased its oil supplies to India and is ready to continue supplying energy resources in any quantity as per India’s requirement. India has been a reliable partner—this is an incontrovertible fact—and unlike the West, India’s approach has always been consistent.
How much Russian oil was purchased in March?
Data from a European think tank has shown that India’s crude oil imports from Russia have increased rapidly in March. The Center for Research on Energy and Clean Air (CREA) said on Tuesday that New Delhi’s purchase of crude oil from Moscow in March increased from $ 1.54 billion in February to $ 5.8 billion, which is more than three times. According to the report, India also imported coal worth $371 million and oil products worth $196 million from Russia in March. From March 2022, New Delhi has emerged as an important market for Russian oil. It will buy about 2 million barrels per day in 2024, and bought about $44 billion worth of crude from Moscow last year.
