Amid the Hormuz crisis, America has extended the exemption given to India to buy oil from Russia. The Trump administration has taken this decision when two days ago Finance Secretary Scott Besant had said that America would not extend this exemption. America has extended this exemption for about a month.
According to Reuters report, the US Finance Department has issued a license for this late on Friday night. After this, ships laden with Russian oil have been allowed to transact till May 16. The move comes just two days after Trump’s Treasury Secretary Scott Besant publicly indicated he had no plans to extend such exemptions.
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How many days’ extension was given?
This new permission will come into effect after the previous 30-day relaxation, which ended on April 11. While it allows continued purchases under specific conditions, it explicitly excludes transactions involving Iran, Cuba and North Korea. That means, under this exemption, no country will be able to buy oil from Iran, Cuba and North Korea.
What did Besant say?
Besant had said in a press conference, ‘We will not renew the general license for Russian oil and Iranian oil. This was oil that had been loaded into ships before March 11. Therefore, it has been completely utilized. He said last month that the Iranian waiver issued by the US Treasury Department on March 20 allowed about 140 million barrels of oil to reach global markets and helped ease pressure on energy supplies during the war. However, this step of America was criticized by the MPs there. He said that relaxation in sanctions will help Iran’s economy when it is at war with America. Similarly, lifting of sanctions on Russia will also help its economy.
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What did Russia say on the exemption received from America?
Kirill Dmitriev, the Russian President’s special envoy, had said that the first waiver would free up the supply of 100 million barrels of Russian crude, which is approximately equal to one day’s global production. Although this relief in sanctions may temporarily increase the global supply of oil, the partial closure of the Strait of Hormuz by Iran has caused a huge surge in petroleum prices. Before the war, about 20% of the world’s oil and gas was transported through the Strait of Hormuz.
