The US Treasury Department has granted India a 30-day authorization to purchase Russian oil, following months of pressure from Washington to reduce energy imports from Russia.
Bloomberg writes about this.
The document was released late on March 5. It allows transactions with Russian crude oil and petroleum products loaded onto ships before March 5, if they are delivered to India and purchased by Indian companies. The permit will be valid until April 4, 07:01 (Kyiv time).
The US Treasury Secretary Scott Bessent explained that the decision was temporary and necessary to keep oil flowing to the world market. He said that the move would not provide significant financial benefits to Moscow, as it only affects oil already at sea.
He also noted that the US is counting on India to increase its purchases of American oil. The temporary permission, according to Bessent, should ease pressure on energy markets amid the escalation in the Middle East.
- In February, the US President Donald Trump lifted an additional 25% tariff on Indian goods imposed over purchases of Russian oil. In response, New Delhi reportedly agreed to gradually phase out direct and indirect imports of Russian oil.
- Meanwhile, interest in Russian oil has recently increased among traders in India and China due to concerns about supply disruptions from the Middle East. China has already increased seaborne purchases of Russian oil to multi-month highs, taking advantage of lower prices.
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