US Extends Waiver On Russian Oil Purchases Amid Peace Talks With Iran
· Free Press Journal
The United States has extended a waiver allowing countries to continue purchasing Russian oil and petroleum products loaded on vessels for a limited period.
The waiver, issued by the US Treasury Department, will remain in effect until May 16, replacing the earlier 30-day exemption that expired on April 11.
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The US had earlier said that the waiver on Iranian and Russian oil purchases will not be extended.
But heightened disruptions in global energy markets due to the ongoing conflict in the Gulf region has kept oil prices higher, leading to the decision.
Crude Oil Prices Fall Over 2% To ₹8,396 Per Barrel On Hopes Of US-Iran Deal & Easing Geopolitical Tensions“As negotiations (with Iran) accelerate, Treasury wants to ensure oil is available to those who need it,” a Treasury Department spokesperson was quoted as saying by Reuters.
The extension aims to stabilise global energy supply and ensure that countries, particularly in Asia, continue to have access to crude oil despite sanctions on Russia.
The waiver applies only to cargoes that were already loaded onto ships before the specified deadline and does not include transactions involving Iran, Cuba, and North Korea.
The decision marks a shift in stance, as earlier indications suggested that the waiver would not be renewed. However, concerns over rising energy prices and supply disruptions prompted the extension.
Countries like India, which have been major buyers of discounted Russian oil, are expected to benefit from the move as it provides temporary relief from supply constraints and helps manage domestic fuel prices.
'Ceasefire Ending Soon?' Trump Says 'Maybe Not', Hints At Strikes If Deal Fails | VIDEOHowever, the extension has drawn criticism from some policymakers, who argue that such waivers could weaken efforts to curb Russia’s revenues from its ongoing war in Ukraine.
Experts believe that further such waivers may be required if disruptions in global energy markets persist.
The supply of crude oil and natural gas from the Gulf regions has been hit severely as the warring sides attacked each other’s energy establishments during the war.
Though the US and Iran are engaged in talks, it is expected to take time for supplies to reach pre-war levels.