Trump waives part of Russian oil sanctions, easing pressure on India

what happened

US President Donald Trump has waived key Russia-related sanctions and tariffs days before they were set to start, according to an executive order issued late on Friday. Major buyers of Russian oil, including India and China, were the main targets. The sanctions law he signed last month allowed tariffs of up to 100% on countries importing Russian oil.

According to Mint, distributed by HT Digital, the move could reduce uncertainty in India's trade talks with the US, which are said to be in their final stages. Crude remains above $100 a barrel, with Brent at $109.9. India imports about 90% of its oil and roughly 45% of its imports come from Russia.

India's retail inflation hit a 23-month high of 5.54% in September, and the Reserve Bank of India raised its FY27 inflation forecast to 5.2%.

why it matters

The waiver matters for markets in two ways. It may ease supply constraints and moderate oil prices, but ongoing tensions in West Asia, including disruptions around the Strait of Hormuz, keep a risk premium in place. For India, expensive crude raises the import bill and adds pressure on inflation and the rupee.

market impact

Oil: a possible easing of supply constraints could weigh on Brent; the rupee and Indian equities are sensitive to the import bill

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