Delhi: Amid the escalating conflict with Iran, the US has announced a temporary 30-day exemption for India. Through this exemption, Indian refineries will be allowed to buy Russian oil.
The US government has temporarily eased economic sanctions on Russia and allowed the sale of Russian oil stranded in the middle of the sea to India.
US Treasury Secretary Scott Bessant said that oil and gas production has reached an all-time high as a result of President Donald Trump’s energy policy. To allow continuous oil supply to the global market, the Treasury Department is giving a temporary 30-day exemption to Indian refineries to buy Russian oil.
This is deliberately a short-term measure and will not bring major economic benefits to the Russian government. He clarified that the exemption only allows transactions related to oil that is already stranded in the sea.
India is an important partner of the US. We expect India to increase its purchases of US oil in the coming days. Besant told the Express that the temporary measure would help ease the pressure on Iran’s efforts to lock down global energy supplies.
US President Donald Trump had imposed a 25 per cent punitive tariff on India’s purchases of oil from Russia. The US administration has accused India of financing the Russia-Ukraine war.
The oil must be unloaded at Indian ports and the entities purchasing it must be established under Indian law.
The Treasury Department’s general license makes it clear that this exemption does not apply to transactions prohibited by any other executive order. In particular, transactions involving the government of Iran or goods and services of Iranian origin will continue to be prohibited under the Iran Business and Approvals Regulations.