Why The US Allowed India To Buy Russian Oil Despite Rising Tariff Dispute

New Delhi: Pressure on the global oil market has increased amid the ongoing conflict in West Asia. Meanwhile, America has decided to give temporary permission to India to buy oil from Russia. The White House says that this step has been taken to keep the global supply balanced in the current situation. America believes that India has honored its request on several occasions in the past, so this time it has been given limited leeway.

Did America allow India to buy Russian oil?

White House Press Secretary Caroline Levitt said that America has currently allowed India to buy oil from Russia. According to him, this decision was taken after the approval of US President Donald Trump and the Treasury Department.

Levitt said India was given this exemption because it had earlier reduced its purchases of Russian oil in compliance with US sanctions. In the current situation, the supply of oil in the global market has been affected, hence this permission has been given to India temporarily.

Was the decision taken regarding the oil already present in the sea?

According to the White House, many of the consignments that India has been allowed to take were already at sea. America says that Russia will not get any major economic benefit from this deal. For this reason, America has approved it as a temporary and limited permission.

Did the US finance minister also say the same thing?

Earlier this month, US Finance Minister Scott Besant had also said that India could be allowed to buy Russian oil amid the oil crisis caused by tensions in West Asia. He also said that India had earlier stopped purchasing Russian oil following American instructions, hence in the current situation it is being given some relief.

Did the India-US trade agreement also have an impact?

Recently, a framework for a trade agreement has been decided between India and America. After this America reduced the import duty imposed on India. Earlier there was talk of imposing 50 percent tariff on India, which was reduced to 18 percent. Earlier, Donald Trump had also expressed displeasure over India buying oil from Russia.

Did India promise to stop buying Russian oil?

India has not officially said that it will completely stop purchasing oil from Russia. However, the government says that the country will have to prioritize its energy needs amid the unstable global energy market. India says that maintaining energy security is its primary responsibility considering the needs of 1.4 billion people.

Did Iran conflict increase pressure on oil market?

The ongoing tension between America, Israel and Iran has also affected the global oil market. Iran has warned of closing the Strait of Hormuz. This sea route is considered very important for about 20 percent of the world's oil and gas supply. Oil from many OPEC countries like Saudi Arabia, Iraq, Kuwait, United Arab Emirates and Iran reaches Asian countries through this route.

Were steps taken regarding energy supply in India also?

Amidst the fear of impact on oil supply, the Indian government has also taken several steps. The Ministry of Petroleum and Natural Gas has given instructions to increase the supply of gas and LPG. The government has decided to give priority to domestic use and has asked refineries to increase production. Besides, the consumption of LPG in commercial use is also being reviewed, so that any possible shortage can be dealt with.