Crude relief: Tariff fear eases as Donald Trump waives sanctions on Russian oil purchase
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In a move which will bring major relief to India and other countries including China, U.S. President Donald Trump has waived sanctions and tariffs on purchase of crude oil from Russia.
The sanctions on Russia and steep tariff provisions were part of the recent law - Lindsey O Grahan Sanctioning Russia and Iran Act, passed by the U.S. Congress on September 16.
What is the key reason behind the move?
“I am hereby waiving the application of such sanctions, restrictions, and duties provided for in the Graham Act,” Trump said, citing national interest behind the move.
Trump said he had submitted to Congress a certification that issuing such a waiver at this time is in the national interest of the United States.
It may be noted that in a surprise move last week, the Trump administration inked a major pact with Russia for oil supply to the U.S..
The U.S. on October 9 announced an agreement with Russia to supply nearly 5 million tonnes of diesel fuel to global markets, as his administration seeks to ease energy prices ahead of the crucial US midterm elections.
The Lindsey O Graham Sanctioning Russia and Iran Act empowered Donald Trump to impose sweeping sanctions on Moscow and steep tariffs against countries which buy oil from Russia.
As per the provisions under section 113 of the Graham Law, the U.S. was authorised to impose tariffs of up to 100 per cent within 30 days of its enactment on all goods brought into the US from the five largest importers of Russian crude oil or gas.Section 115 of the law empowered the President to grant waiver from the application of sanctions, restrictions and duties if such a step is in the national interest of the US.
“Pursuant to section 115(a) of the Graham Act, I hereby waive the application of any duties provided for in sections 112 and 113 of the Graham Act or this order,” Trump said. The move comes days ahead of US Secretary of State Marco Rubio’s visit to India.
It may be noted that India has raised the issue earlier with the U.S. External Affairs Minister S Jaishankar had raised concerns about the Graham Act during a meeting with Rubio on the sidelines of the UN General Assembly in New York last month.