Sanctions relief on Russian oil will mainly affect one country – Bloomberg

The US discusses easing oil sanctions against Russia with limitations

The United States of America is considering the possibility of limited easing of oil sanctions against Russia, focusing on deliveries to India, reports Bloomberg agency, citing sources.

Following the start of the conflict between the US and Israel on one side and Iran on the other, there was an increase in energy prices, which had a significant impact on the global market, including Ukraine. US President Donald Trump announced the possibility of lifting some sanctions to reduce prices, but details remain unclear. In his phone call to Russian President Vladimir Putin, Trump discussed this issue but did not specify the measures he plans to take.

Washington stated that such easing of sanctions would be temporary and primarily concern India. This decision, already agreed upon with European partners, will not lead to significant growth in Russia’s profits from oil exports. European Commissioner for Economy Valdis Dombrovskis confirmed that the permission to import Russian oil is very limited in time and scope.

The situation is also affected by the blockage of the Strait of Hormuz, a strategically important water artery, through which about 20% of the world’s oil and liquefied natural gas trade passes. After the conflict began, oil prices surged rapidly: from $72.48 to $119.5 per barrel at the peak. Brent oil futures are currently trading at $93.02 per barrel.

The Group of Seven (G7) countries, which include the US, Japan, Germany, the UK, France, Italy, and Canada, are ready to use their strategic oil reserves if needed, but some G7 members believe that the time for this has not yet come.

Indian oil refineries have already purchased millions of barrels of Russian oil, but India’s largest lender, the State Bank of India, refused to process payments for deliveries, even after a temporary lifting of American sanctions.