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US President on the front of international politics and global trade Donald Trump has taken a very big and shocking decision, due to which many major countries of the world including India have heaved a sigh of relief. There was an atmosphere of tension around the world regarding energy trade with Russia, but now US President Trump has given huge relief to five countries including India and China which import large quantities of oil and gas from Russia. Under this new decision, no heavy tariff or economic duty will be imposed on countries purchasing energy products from Russia. Let us know what is the reason behind this sudden decision of Trump and what effect it will have on the global market.
India and China got big relief from Graham Act restrictions
Taking a big step, US President Donald Trump has officially announced to give major relief to countries like India and China from trade tariffs and sanctions. After this decision, no additional tariff will be imposed on the purchase of crude oil and gas from Russia by India and China.
Let us tell you that only last month, President Trump had signed a strict law, under which it was provisioned that any country that imports oil or gas from Russia will have to face strict American sanctions and heavy duties. The main objective of this proposed law was to weaken Russia’s economy, but it would increase the problems of countries like India and China which are largely dependent on Russian crude oil for their energy needs. Now through this new executive order, Trump has currently excluded these countries from the scope of these strict restrictions.
What is ‘Graham Act’ and its stringent provisions?
at the center of this whole matter ‘Graham Act’ which was supported by the late US Senator Lindsey Graham. Through this stringent law, America wanted to tighten the economic grip on Russia. A strict provision was made in this law that if any country buys oil or natural gas from Russia on a large scale, it will have to face serious economic sanctions.
Even among the top countries purchasing energy from Russia Heavy tariffs ranging from 100 percent to 500 percent It was said that it would be installed. However, this law provided exemption only to those countries which import only 15 percent of their total domestic requirement. But countries like India and China buy oil from Russia on a large scale for their energy requirements, so this law had become a matter of concern for them.
Citing the changing equation of America and Russia and national interest
Analysts believe that this latest decision of President Donald Trump has come at a time when there is some softening in the diplomatic relations between Russia and America. This order of Trump is being considered very important amidst recent criticism of the working style of Ukrainian President Volodymyr Zelensky and indications of increasing diplomatic closeness with Russia. Although Trump has been continuously appealing to the top leaders of both Russia and Ukraine to stop the war, despite all efforts, the war has not stopped completely yet.
In an executive order issued late Friday night, the White House made it clear that all restrictions and duties under the Graham Act are being exempted from enforcement for the time being. President Trump has submitted a formal certificate to the US Congress, in which he fully approves this step. ‘Step taken in national interest’ Told.
Which five countries have got the benefit of this exemption?
The top five countries in the world importing oil and gas from Russia have directly benefited from this new relief. in these five countries India, China, Slovakia, Hungary and Azerbaijan Are included. India is currently the second largest buyer of Russian crude after China. India has always adopted a policy of importing oil independently, keeping its energy security paramount, and Trump’s decision has brought great relief to Indian refineries and the economy.
However, experts also believe that this ban on tariffs and sanctions related to Russia may be for some time only. President Donald Trump may also change this policy in the future keeping in mind global geopolitics and America’s economic benefits. Therefore, it will be interesting to see in which direction the relations between America and Russia move in the coming days and what stance India’s energy diplomacy takes on this.