America has reportedly extended the waiver of its sanctions on purchases of Russian crude oil by another 30 days, just days after it expired. This reduces uncertainty over India’s oil imports from Russia, even as New Delhi has made it clear that India’s oil-buying is not affected by third-party impositions.
“We have been purchasing from Russia before, during the waiver and now,” Sujata Sharma, joint secretary in the petroleum ministry, said on Monday, adding that these imports are guided by commercial considerations.
That said, India’s oil imports from Russia were reported to have dropped initially in the wake of sanctions, before the West Asia war prompted Washington to suspend them in a bid to enhance global supplies.
The US seems aware that with the Strait of Hormuz still shut, hydrocarbon shortages remain a significant global risk. It should also recognize that the use of geopolitical tools that constrain overall supply are self-defeating whether or not it’s war-time.
Despite US boasts of self-sufficiency, its retail petrol prices have shot up since 28 February. That’s how markets work. It’s in the whole world’s interest, including America’s, to let oil flow freely.