New Delhi: In a significant policy shift, the United States has extended temporary waivers allowing the purchase of Russian oil already loaded onto tankers, reversing its earlier stance against such relief. The move comes amid ongoing geopolitical tensions linked to the conflict involving Iran and is expected to stabilise global energy markets.
The revised general license effectively replaces the earlier waiver and pushes the deadline to May 16. This allows countries to continue receiving oil shipments that were already in transit, helping prevent immediate disruptions in supply chains. The decision marks a notable change after initial indications that no extension would be granted.
For India, a major importer of Russian crude, the extension provides crucial short term relief. With nearly 90 percent of its crude oil needs dependent on imports, India faces significant exposure to global supply fluctuations. A large share of these imports passes through the strategically vital Strait of Hormuz, which has been under pressure due to regional tensions, leading to delays and increased shipping risks.
The waiver helps ensure continuity in oil supplies at a time when uncertainty remains high. It also provides a buffer as a similar exemption for Iranian crude is set to expire, reducing the risk of immediate shortages for Indian refiners. However, the financial advantage may be less pronounced, as Russian crude prices have surged recently, reaching their highest levels in over a decade.
India’s imports of Russian oil saw a sharp rise in March, with volumes more than doubling and the total import bill increasing significantly. The country emerged as one of the largest buyers of Russian crude, second only to China during this period.
While higher oil prices could add to inflationary pressures domestically, continued access to Russian supplies remains critical for maintaining energy stability. The extended waiver, therefore, plays a key role in easing immediate supply concerns, even as global market uncertainties persist.
