United States President Donald Trump’s decision to waive the “sanctions, restrictions and duties provided for in the Graham Act” comes as a major relief for India’s energy security and trade, and could well clear the way for a trade deal. The waiver followed within days of his announcement of a deal allowing Russia to sell diesel to the US and global markets, and of an 'energy ceasefire' between Ukraine and Russia.

India is the world’s third largest consumer of crude, depends on imports for over 88% of its needs, and counts Russia as its largest supplier. Russian crude hit an all-time high of 2.8 million barrels per day in July, about 53% of total imports. With the threat of 100% tariffs looming, India gradually turned back to Gulf oil, particularly from the UAE. In August, Russia's share fell to 44%, while the UAE's surged to 17.4% and Saudi Arabia's stood at 14%. The waiver gives India the room to make supply decisions on commercial merit rather than under the shadow of sanctions.

Ironically, the waiver strikes at the very heart of the Graham Act, which won unprecedented bipartisan backing from Democrats and Republicans in both the Senate and the House of Representatives, and was designed to choke off the money funding........

© Mathrubhumi English