REGULATORY · MARKET STRUCTURE · INDIA
US Treasury waives India Russian oil ban
Change
The US Treasury permitted Indian refiners to buy Russian crude already loaded on tankers by March 5 under a 30-day waiver.
Why it matters
The authorization covers Russian crude that was already loaded on tankers by March 5. The permission lasts 30 days. Separately, India’s oil ministry ordered refiners to maximise LPG output and prohibited using propane or butane for making petrochemicals. State-run oil companies were directed to supply their entire LPG output solely to households.
Implications
- • Only Russian crude cargoes loaded by March 5 qualify for purchase under the waiver.
- • Transactions for covered cargoes are constrained to the 30-day authorization period.
- • Refiners are barred from using propane or butane for petrochemicals under the LPG supply order.
- • State-run oil companies must allocate all LPG output to household supply.
Who is affected
- • Crude oil refiners
- • Crude oil traders and shippers handling Russian cargoes
- • LPG production and supply operators at state-run oil companies
- • Petrochemical producers using propane or butane feedstocks
Source
Topics
Law & Public Safety Regulatory Actions Energy & Power Oil & Gas Energy Transition