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US Looks to End Waiver on Russian Oil Purchase, Says Rubio; Here's How It Will Hit India

From Hindustan Times · () English

Translated from English, summarized and contextualized by DistantNews.

At a glance

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  • The U.S. plans to end waivers allowing the purchase of Russian oil, according to Secretary of State Marco Rubio.
  • These waivers, initially intended to ease disruptions from the Strait of Hormuz blockade, have been extended twice since March.
  • India, a key beneficiary of these waivers, may face impacts as the U.S. aims to sanction Russian oil, though the final decision rests with the Treasury Department.

The United States is moving to terminate waivers that have permitted the purchase of Russian oil, U.S. Secretary of State Marco Rubio announced Tuesday. These exemptions were initially put in place to mitigate supply disruptions caused by the blockade of the Strait of Hormuz amid regional conflicts.

Rubio described the current waiver as "time-limited," explaining its purpose was to increase global oil supply. "We would like to end it as soon as we possibly can because the underlying policy of this country has been to sanction their oil," he told a Senate Foreign Relations Committee hearing. The waiver, first announced in March, has been extended twice, with the latest expiration set for June 17.

We would like to end it as soon as we possibly can because the underlying policy of this country has been to sanction their oil. These are time-limited waivers for the purpose of opening up more global supply.

— Marco RubioU.S. Secretary of State Marco Rubio explaining the rationale behind the waiver during a Senate Foreign Relations Committee hearing.

India has been a significant beneficiary of these waivers, enabling its continued purchase of Russian oil. However, the potential termination raises questions about the impact on New Delhi's energy imports. While the U.S. initially stated that lifting sanctions on seaborne Russian oil would not be financially advantageous to Moscow, volatile oil prices have kept the waiver active to alleviate global supply pressures.

Rubio indicated that the final decision on ending the waiver rests with the Treasury Department. He also noted the "contagion potential" of global supply issues, suggesting that strategic reserves and other measures have limits. The U.S. has previously pressed India to halt its Russian oil purchases, with former President Donald Trump claiming assurances from Prime Minister Narendra Modi.

The problem we're facing, too, is there's a contagion potential, and that is that at some point we can do strategic reserves, we can do some of the other things that we've done to alleviate global supply, but at some point you have to ensure -- this is not so much for us.

— Marco RubioRubio discussing the complexities of managing global oil supply issues during the Senate hearing.
DistantNews Editorial

Originally published by Hindustan Times in English. Translated, summarized, and contextualized by our editorial team with added local perspective. Read our editorial standards.

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