US Grants 30-Day Waiver for India to Buy Russian Oil

The United States has issued a temporary 30-day waiver that allows India to purchase Russian oil cargoes that are currently stranded at sea. This move aims to ease immediate pressure on global energy supplies amid ongoing geopolitical tensions. While announcing the decision, US Treasury Secretary Scott Bessent said that the measure is designed to keep oil flowing into international markets without delivering substantial financial gains to Moscow.

The waiver permits Indian refiners to buy Russian crude that had already been loaded onto vessels. The cargoes were could not reach buyers due to the shifting trade restrictions and market disruptions. “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”, Bessent said in a statement that is posted on social media.

He added that the authorization applies only to oil, because it is already stranded at sea and therefore would not significantly benefit the Russian government. “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 said.

India Turns to Russian Oil as Middle East Supply Risks Grow

The waiver arrives at a time when India faces mounting pressure on its energy supplies. According to sources familiar with the matter, Indian refiners have begun securing millions of barrels of Russian crude to address shortages, which are triggered by instability in the Middle East.

Industry sources told a leading news site that state-run refiners include Indian Oil Corporation, Bharat Petroleum, Hindustan Petroleum, and Mangalore Refinery and Petrochemicals. Meanwhile, they are negotiating with traders for immediate deliveries of Russian cargoes. One source said that these refiners have already secured roughly 20 million barrels of crude from traders. At the same time, private giant Reliance Industries has also approached suppliers to seek prompt shipments.

India has always been a highly vulnerable to disruptions in global energy markets. The country maintains crude reserves that cover only about 25 days of consumption. At the same time, roughly 40 percent of India’s imported oil travels from the Middle East through the strategically sensitive Strait of Hormuz.

US Pressure on India Over Russian Oil Imports

Washington has spent months urging New Delhi to reduce its purchases of Russian crude. The move aims to limit funding for Moscow’s military campaign following the Russian invasion of Ukraine. India was previously the largest buyer of Russian seaborne crude after the conflict began in 2022.

However, Indian refiners had begun scaling back imports earlier this year after diplomatic pressure from the US. The move helped India to avoid a proposed 25 percent tariff and supported negotiations for an interim trade arrangement with the United States.

Bessent described the waiver as a limited and temporary solution. “This stopgap measure will alleviate pressure caused by Iran’s attempt to take global energy hostage”, he said. Meanwhile, US officials continue to encourage India to diversify its supply sources. Washington expects that India will gradually increase purchases of American crude after the global markets stabilize.

Web Resources on US Waiver Allowing India to Buy Russian Oil

1. NYTimes.com: With War in the Gulf, India Turns Back to Russian Oil
2. Bloomberg.com: US Grants Temporary Waiver for India to Import Russian Oil
3. CNBC.com: U.S. offers India a 30-day waiver for buying Russian oil
4. Reuters.com: Indian refiners buying prompt Russian oil as Iran war hits supplies