America is going to end the exemption to buy Russian oil. US Secretary of State Marco Rubio said in a Congressional hearing that this exemption was given for time. This exemption was given because during the war between America, Israel and Iran, Iran had closed the Hormuz Strait, which affected the world’s oil and gas supply.
Many countries including India got the benefit of this exemption and were able to buy Russian oil. Rubio said that now this exemption will be abolished as soon as possible because America’s policy is to ban Russian oil. This relaxation started in March and has been extended twice. It ends on June 17.
What was the agreement between India and America?
The Trump administration had promised to stop buying Russian oil from India. In return, America removed the additional 25% tariff imposed on India. Now America is diverting India towards Venezuelan oil. Due to global oil supply being affected, India had again bought Russian oil for some time, but America is now preparing to stop this exemption.
Why was this exemption given?
In February 2026, war started between America, Israel and Iran. Iran closed the world’s most important Strait of Hormuz. About 20 percent of the world’s oil and gas passes through this route. 40 percent of South Asia comes from here. Due to this, the supply of oil stopped and prices started increasing. To reduce the problem, America gave a time-limited exemption in March 2026, so that countries can buy Russian oil and there is no shortage of oil in the market. This exemption has been extended twice and is ending on June 17.
What will be the impact on India?
India used to buy cheap Russian oil earlier also. After the war, it became difficult for India to get oil due to the closure of Hormuz. Due to America’s discount, India started buying Russian oil again. The Trump administration asked India to stop buying Russian oil. In return, America removed the additional 25 percent tariff imposed on India. Now America is pressurizing India to buy oil from Venezuela.
- Purchasing Russian oil may be difficult for India
- India may have to find alternative sources
- The global oil market may be affected again
- Russia provides oil at cheap rates, Russia’s earnings may decrease
- India may face US tariffs if it continues buying oil from Russia
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