US Denies Extension of Russian Oil Waiver, Pressures Energy Markets Amid Iran Conflict
US move on Russian oil waiver adds pressure as Iran war strains energy markets, India engaged in talks: Sources
The Economic TimesImage: The Economic Times
The US has announced it will not extend waivers for Russian oil imports, increasing pressure on global energy markets already strained by the ongoing conflict in Iran. India is in talks with the US regarding the waiver, while Russian officials assure continued energy exports to India.
- 01The US will not renew waivers for Russian oil imports, impacting global energy supply.
- 02India is negotiating with the US to maintain its Russian oil imports amidst supply chain constraints.
- 03India's crude oil imports from Russia surged to $5.8 billion in March 2024.
- 04Russian officials confirm increased energy exports to India, including crude oil and LNG.
- 05India's energy purchases from Russia have significantly increased since March 2022.
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The US has announced it will not extend waivers that allowed certain imports of Russian oil, intensifying pressure on an already strained energy market due to the ongoing conflict in Iran. This decision comes as India's foreign secretary discussed the waiver during a recent visit to the USA, highlighting India's concerns over supply chain disruptions caused by the war in West Asia. Despite the US stance, India may continue its oil imports from Russia, asserting its sovereign rights. Notably, India's crude oil purchases from Russia skyrocketed to $5.8 billion in March 2024, up from $1.54 billion in February, according to the Center for Research on Energy and Clean Air (CREA). Additionally, India imported coal and oil products from Russia worth $371 million and $196 million, respectively, in March. Russian Ambassador to India, Denis Alipov, has assured that Russia will increase its energy exports to India, emphasizing the reliability of India's partnership compared to Western nations. Since March 2022, India has become a crucial market for Russian oil, purchasing almost 2 million barrels per day and nearly $44 billion worth of crude oil last year.
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The US decision could lead to higher energy prices in India, affecting consumers and businesses reliant on oil imports.
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