MARKET STRUCTURE · INDIA
U.S. authorizes purchases of stranded Russian oil
Change
The Trump administration issued a temporary authorization allowing other countries to purchase Russian oil stranded at sea.
Why it matters
The authorization applies to Russian oil cargoes stranded at sea. It provides a legal route for other countries to buy those cargoes despite U.S. sanction restrictions. A similar waiver of 30 days was issued to India on March 5. The Department of Energy announced a release of 172 million barrels from the Strategic Petroleum Reserve one day before the authorization.
Implications
- • Authorized buyers can finalize transactions for Russian cargoes stranded at sea.
- • The temporary nature of the authorization limits the time window for completing such purchases; a prior waiver to India lasted 30 days.
Who is affected
- • Oil importers and commodity traders
- • Owners and operators of tankers carrying Russian crude
- • National governments granted waivers
- • Compliance and legal teams at trading firms
Source
Topics
World & Politics International Affairs Energy & Power Oil & Gas