New Delhi, Oct 17: India is expected to keep importing Russian crude at close to current levels after US President Donald Trump waived sanctions and tariffs mandated by a new law on major buyers of Russian oil, analysts said.
Trump issued an executive order late on Friday waiving the “sanctions, restrictions, and duties” under the Lindsey O. Graham Sanctioning Russia and Iran Act, a day before a 30-day deadline for enforcement expired. He signed the law on September 18.
The law authorised tariffs of up to 100 per cent on goods from the five largest importers of Russian crude and gas, and sanctions on Russia’s shadow fleet of tankers. The waiver is not specific to India and could also benefit China. The order lets the administration reconsider it later.
India is the largest importer of Russian seaborne crude, averaging 1.8 million barrels per day this year, ahead of China at 1.2 million, ship tracking data showed. Italy, Turkey and the Netherlands completed the top five.
India imported about 1.82 million bpd of Russian crude in September compared to about 1.49 million by China. Kpler expects October imports to hold at around 1.8-1.9 million bpd. Volumes are well below mid-year highs. Indian imports peaked at 2.6 million bpd in June and 2.57 million bpd in July.
With the waiver, refiners are likely to continue buying Russian crude, analysts said. Madhavi Arora, Chief Economist of Emkay Global Financial Services, said India faced potential tariffs of up to 100 per cent under this bill, as one of the top five global buyers of Russian oil.
Trump’s move comes days after he announced the US would import diesel from Russia, in a bid to bring down domestic fuel prices ahead of the November midterms. (PTI)