Good news for India! US renews waiver on Russian seaborne oil for 30 more days

The United States Treasury is set to extend its sanctions waiver on Russian seaborne oil by another 30 days after several countries sought more time to continue purchases amid ongoing disruptions in global energy supplies, according to a Reuters report citing a source familiar with the decision.  

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Confirming the development, US Treasury Secretary Scott Bessent in a post on X (formally twitter) wrote, "US Treasury is issuing a temporary 30-day general license to provide the most vulnerable nations with the ability to temporarily access Russian oil currently stranded at sea. This extension will provide additional flexibility, and we will work with these nations to provide specific licenses as needed. This general license will help stabilize the physical crude market and ensure oil reaches the most energy-vulnerable countries. It will also help reroute existing supply to countries most in need by reducing China’s ability to stockpile discounted oil".

The waiver, which expired on May 16, was initially introduced in March to ease supply shortages and contain surging oil prices triggered by the Iran conflict and the closure of the Strait of Hormuz. The latest extension would mark the second time Washington has allowed the waiver to lapse before renewing it.  

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The report said the extension was requested by several poorer and vulnerable countries affected by reduced access to Gulf oil supplies, though the countries were not identified.  

India has emerged as one of the major beneficiaries of the waiver. The country had become one of the largest buyers of Russian crude before the United States imposed sweeping sanctions on Russian oil companies over Moscow’s war in Ukraine.  

Even as the waiver remained under discussion, Indian officials maintained that the country’s purchases of Russian oil were driven by commercial considerations and would continue regardless of Washington’s stance.  

“There is no shortage of crude,” Sujata Sharma, joint secretary in India’s petroleum ministry, said during a media briefing on May 18.  

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Oil markets, however, remained under pressure. Brent crude futures rose around 1.5% to nearly $111 per barrel on May 18 as supply concerns linked to the Iran conflict outweighed optimism over the waiver extension.  

US Treasury Secretary Scott Bessent, speaking on the sidelines of the G7 finance leaders’ meeting in Paris, called for stricter enforcement of sanctions on Iran.  

“We call upon all our G7 and indeed all of our allies and the rest of the world to follow the sanctions regime, so that we can crack down on the illicit finance that is fueling the Iranian war machine and give this money back to the Iranian people,” Bessent told reporters, Reuters reported.