‘Permitted India to accept Russian oil to ease temporary gap of oil around world’: US Treasury Sec Scott Bessent

In an interview with Fox Business, Bessent said, “The Indians have been very good actors. We had asked them to stop buying sanctioned Russian oil this fall. They did. They were going to substitute it with US oil. But to ease the temporary gap of oil around the world, we have given them permission to accept Russian oil. We may un-sanction other Russian oil.”

Bessent had made similar remarks earlier also.
With the crisis in the Gulf severely hampering shipping routes that pass through the Strait of Hormuz, the United States on Thursday (local time) allowed a 30-day waiver for India to purchase Russian Oil to meet its energy requirements.

Speaking at the moment, Bessent said, “President Trump’s energy agenda has resulted in oil and gas production reaching the highest levels ever recorded. To enable oil to keep flowing into the global market, the Treasury Department is issuing a temporary 30-day waiver to allow Indian refiners to purchase Russian oil. This deliberately short-term measure will not provide significant financial benefit to the Russian government as it only authorizes transactions involving oil already stranded at sea. India is an essential partner of the United States, and we fully anticipate that New Delhi will ramp up purchases of U.S. oil. This stop-gap measure will alleviate pressure caused by Iran’s attempt to take global energy hostage.”

India sources nearly 40 per cent of its oil imports from the Middle East, with a significant portion transported through the strategically important Strait of Hormuz.

Notably, according to sources, India is reviewing its energy situation twice a day and is in a very comfortable position regarding its energy security. India’s current stock position is also seen to be comfortable, with stock being replenished every day.

As per the sources, there is no shortage of LPG or LNG, as well as crude oil, in the world.
Petroleum Minister Hardeep Puri on Friday said there is no shortage of energy in India and there is no cause of worry for its energy consumers. The minister discussed various aspects of India’s uninterrupted energy imports despite geopolitical challenges with the media.

“Our priority is to ensure availability of affordable and sustainable fuel for our citizens, and we are doing it comfortably. There is no shortage of energy in India and there is no cause of worry for our energy consumers,” the minister posted on X.

According to the sources, the country currently has access to more energy supplies from diversified sources than the volume that could potentially be impacted through the Strait of Hormuz. India’s existing stock of crude oil and petroleum products is also adequate to meet domestic demand.

Sources said the government is closely monitoring the situation and plans to ramp up supplies from alternative geographies to offset any potential supply constraints linked to the Strait of Hormuz.

They highlighted that India has significantly diversified its crude import basket over the past few years. Since 2022, India has been importing crude oil from Russia. While Russia accounted for only 0.2 per cent of India’s total crude imports in 2022, the share has risen substantially in the following years.

“In February, India imported about 20 per cent of its total crude oil imports from Russia, amounting to around 1.04 million barrels per day,” government sources said.

Also on Friday, US Energy Secretary Chris Wright said that Washington’s decision on issuing a 30-day waiver to India to purchase certain Russian oil supplies is part of “short-term measures” aimed at keeping global oil prices under control amid supply pressures linked to tensions in the Middle East.

Speaking to ABC News Live, Wright explained that the move is intended to quickly bring oil stored in floating reserves into the global market and ease immediate supply constraints.

He added that there are significant volumes of Russian oil currently stored in floating tankers around southern Asia, and that the US has encouraged India to import those supplies to stabilise the market.

This comes amid escalating tensions in West Asia after a joint US-Israel military strike on February 28 on Iranian territory resulted in the assassination of its Supreme Leader, Ayatollah Ali Khamenei and other senior figures, prompting a fierce response from Tehran.

In retaliation, Iran launched waves of drone and missile attacks across multiple Arab countries. (ANI)