CURRENT AFFAIRS | 20 MAY 2026
The US Treasury’s Office of Foreign Assets Control (OFAC) on 18 May 2026 issued General License No. 134C, extending the wind-down window for Russian seaborne crude oil already loaded on tankers from 11 April to 17 June 2026. The reprieve directly buys time for Indian refiners — Reliance Industries and Indian Oil Corporation chief among them — that import roughly 2.5-2.7 million barrels per day of seaborne crude through the Strait of Hormuz, much of it Urals-grade Russian barrels lifted under Specially Designated Nationals (SDN) restrictions imposed on Rosneft and Lukoil last quarter.
Sanctions, SDN List & Indian Refiner Compliance
- OFAC General Licenses are time-bound carve-outs from broader sanctions; GL 134C replaces GL 134B and is enforceable under the International Emergency Economic Powers Act (IEEPA), 1977.
- SDN List entries (Rosneft, Lukoil) trigger secondary sanctions — non-US parties (Indian refiners, Greek tankers, P&I clubs) face being cut off from USD clearing and SWIFT messaging.
- India’s response is anchored in strategic autonomy (MEA position) and the absence of any UN Security Council Chapter VII Resolution sanctioning Russian oil — only US unilateral measures.
- Strait of Hormuz transit is governed by Article 38 of UNCLOS, 1982 (right of transit passage through international straits) — Iran is signatory but not a party to ratification of UNCLOS Annex.
CLAT Angle — Sanctions Law & Energy Security
Examiners pair this with the Trump-era OFAC tightening on Iran and the older CAATSA Section 231 waivers India received in 2018-19 for S-400 purchases. Expect a comprehension passage on “unilateral sanctions versus multilateral UN sanctions” and a Legal Reasoning principle problem applying secondary sanctions to a hypothetical Indian PSU.
Key Facts & Figures
| Parameter | Value |
|---|---|
| License Number | OFAC GL 134C (supersedes 134B) |
| New wind-down deadline | 17 June 2026 (was 11 April) |
| India’s seaborne crude (mbpd) | ~5.0 (Russian share: 1.6-1.8) |
| Indian Strategic Petroleum Reserve | ~9.5 days net imports (Visakhapatnam, Mangaluru, Padur) |
| Issuing authority | US Treasury, OFAC (under IEEPA, 1977) |
Mnemonic — “R-O-S-E”
Rosneft & Lukoil on SDN list · OFAC GL 134C · Strain of Hormuz transit · Extended to 17 June.
Practice Quiz — 10 CLAT-Style Questions
Click an option to reveal the answer and explanation.
