Trump sanctions waiver on Russian crude expires: What it means for India amid US-Iran peace deal
The sanctions waiver in place since almost the start of the US-Iran conflict has benefitted India. (AI image) US-Iran peace deal: 14 key points Russian
The sanctions waiver in place since almost the start of the US-Iran conflict has benefitted India. (AI image) US-Iran peace deal: 14 key points Russian oil sanctions waiver expires What it means for India In wake of the US-Iran understanding for a peace deal and the signing of an MoU, the Trump administration has quietly let the sanctions waiver for Russian crude oil to lapse. US President Donald Trump had earlier this week hinted that sanctions on Russian oil could be back once the Strait of Hormuz opens and normalises global oil supplies.Last year, the Trump administration imposed sanctions on Russian energy giants Rosneft and Lukoil as part of efforts to pressure Moscow to end the war in Ukraine by restricting a key source of revenue. Russia remains one of the world's largest oil exporters, alongside the US and Saudi Arabia.The sanctions waiver in place since almost the start of the US-Iran conflict has benefitted India, which depends on the Middle East for a big portion of its crude oil supplies. While India has stressed on its oil procurement decisions being driven by energy security needs, a sanctions waiver made all Russian crude oil economical for purchase.The US Treasury did not issue an extension on Wednesday for its sanctions waiver covering Russian seaborne oil, which expired at midnight, according to a Reuters report.
However, neither President Donald Trump nor senior administration officials clarified whether the lapse would result in the sanctions being reinstated.The waiver had been introduced during the conflict with Iran to help vulnerable economies manage the energy crisis by allowing access to Russian oil. With Washington and Tehran having now reached a memorandum of understanding aimed at ending the war and restoring Middle Eastern oil supplies to global markets, the policy could be reassessed.Speaking to reporters at the G7 summit in France, Trump declined to provide a definitive answer on the possible return of sanctions against Russia. He said the administration was monitoring the situation and watching how far oil prices decline, noting that crude prices had been falling sharply.A day earlier, Trump had suggested that ending the waiver and allowing sanctions to return could become feasible once oil supplies from the Middle East resumed normal flows.In the past, the US has occasionally allowed the waiver to lapse before renewing it a few days later.Since the Russia-Ukraine war began in 2022, Moscow emerged as a key crude supplier for India, selling oil at discounted rates as Europe restricted imports.
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