US Treasury Secretary Scott Besent described India’s continued purchase of Russian oil as “inevitable”, saying the decision to grant a temporary 30-day exemption to Indian refiners was driven by urgent supply needs amid energy outages caused by the conflict in West Asia.
In an interview with Sky News journalist Wilfred Frost, Besant said that the US administration had allowed a 30-day exemption for Indian refineries that were earlier banned from purchasing Russian oil.
“Deterministic”
Explaining the decision, Besant said the waiver was necessary because Russian oil shipments were already on their way. “Well, I think it’s inevitable and that’s why we gave a 30-day exception – because the Russian barrels are in the water and it’s a quick source for Indian refiners. The other way to think about it is that those barrels are going to end up in China anyway,” Besant added.
When the host asked whether it was unfortunate that Russia would benefit from the war situation that arose after the joint US-Israeli operation in Iran, the US Treasury Secretary acknowledged the concern but said: “We hope that they (Russia) will benefit in a short period.”
Trump administration exempts New Delhi for 30 days
Besant said earlier this month that India would be allowed to resume buying Russian crude to stabilize energy supplies after the crisis in West Asia disrupted global oil flows.
US President Donald Trump signed the waiver allowing Indian refineries to buy Russian oil.
“The Indians have been very good actors. They stopped buying Russian oil when we asked them to, and now we are allowing them to accept Russian oil to provide supplies,” Besant told Fox News.
Conflict in the Gulf disrupts oil supplies
The move came amid a worsening crisis in the global energy market following the ongoing conflict between the United States, Israel and Iran in West Asia. Supply chains have been disrupted and key shipping routes such as the Strait of Hormuz are under threat.
The strategically important Strait of Hormuz constitutes a major route through which approximately 20 percent of the world’s oil and gas supplies pass.
A large share of crude oil exports from OPEC producers – including Saudi Arabia, Iraq, Kuwait, the United Arab Emirates and Iran – move through the Strait, primarily to Asian markets. Qatar also passes almost all of its LNG exports through the same waterway.
With supply lines under pressure, many Asian countries – including India – have begun exploring ways to conserve fuel and secure alternative supplies.
India had already gradually reduced its purchases of Russian crude last year amid pressure from Washington, and replaced those barrels with supplies from Saudi Arabia and Iraq. However, the expanding conflict in the Middle East has disrupted these supply routes, leading to renewed reliance on Russian oil shipments.
