New Delhi/Washington, DC: In a big relief for New Delhi, the US has announced a 30-day waiver, allowing Indian refiners to purchase Russian oil. This comes at a time when supply of crude from the Gulf nations has been disrupted due to the ongoing crisis in the region.
Nearly 40% of India’s oil imports moved through the Strait of Hormuz that has now been blocked by Iran.
This announcement was made by US treasury secretary Scott Bessent on Friday.
“The Treasury Department’s Office of Foreign Assets Control issued a Russia-related licence “Authorizing the Delivery and Sale of Crude Oil and Petroleum Products of Russian Federation Origin Loaded on Vessels as of March 5, 2026 to India,” the treasury said in a statement.
It said the transactions, including from vessels blocked by various sanctions regimes, are authorized through the end of the day on April 3, 2026, as reported by NDTV.
Bessent described India as an “essential partner” of the United States, while highlighting bilateral ties.
“President Trump’s energy agenda has resulted in oil and gas production reaching the highest levels ever recorded. To enable oil to keep flowing into the global market, the Treasury Department is issuing a temporary 30-day waiver to allow Indian refiners to purchase Russian oil. This deliberately short-term measure will not provide significant financial benefit to the Russian government as it only authorizes transactions involving oil already stranded at sea,” he posted on X.
“India is an essential partner of the United States, and we fully anticipate that New Delhi will ramp up purchases of US oil. This stop-gap measure will alleviate pressure caused by Iran’s attempt to take global energy hostage,” Bessent added.
This comes a day after Russia offered oil to India to tide over the crisis. Moscow offered to reroute tankers that are close to Indian waters.
The US had imposed sanctions on Russian oil majors Lukoil and Rosneft last November, in an effort to pressure Moscow over its invasion of Ukraine. With India facing an additional tariff of 25%, its imports of Russian crude fell to about 1.1 million barrels per day in January, the lowest since November 2022. This pushed Moscow’s share of overall oil imports down to 21.2%, industry data showed. The source said the share climbed back to around 30% in February.
Global oil supplies from the Gulf have been hit after Iran struck Saudi Aramco’s Ras Tanura refinery and Iraq’s Rumaila oil field, warning of attacks on tankers moving through the Strait of Hormuz.
The Gulf crisis has shot up oil prices. Brent crude went up to $83.07 per barrel on Friday morning. Despite this hike in global prices, officials in India have ruled out any immediate increase in petrol and diesel prices.
