US grants waiver to allow India to buy Russian oil amid Iran war | US foreign policy
The US Treasury on Thursday granted a 30-day waiver allowing India to purchase Russian oil currently stuck at sea.
“To allow oil to continue flowing into the global market, the Treasury Department is providing a temporary 30-day waiver to allow Indian refiners to purchase Russian oil,” Treasury Secretary Scott Bessent said in a statement posted on social media.
“This deliberately short-term measure will not bring significant financial benefits to the Russian government because it only allows transactions involving oil already stuck at sea,” he continued.
He called the measure temporary because Washington expects India to eventually buy more U.S. oil.
“This interim measure will ease the pressure caused by Iran’s attempt to hold the world’s energy hostage,” Bessent said.
Indian refiners are buying millions of barrels of Russian crude as India seeks to address an oil supply crisis triggered by conflict in the Middle East, six sources familiar with the matter told Reuters.
Bessent’s announcement comes after months of pressure from Washington on New Delhi to avoid buying Russian barrels in a bid to reduce financial flows to Moscow’s war effort in Ukraine.
India is vulnerable to energy supply shocks, with its crude inventories covering only about 25 days of demand. India receives about 40% of its oil imports from the Middle East through the Strait of Hormuz.
India was the main buyer of Russian seaborne crude after Moscow’s invasion of Ukraine in 2022, but in January its refiners began reducing their purchases under pressure from Washington.
Reducing Russian oil purchases allowed New Delhi to avoid 25% tariffs and reach an interim trade deal with the United States.
A source directly involved in the matter said India had contacted Donald Trump’s administration for permission to buy Russian crude imports due to the Iran conflict.
India’s oil and foreign ministries did not respond to emails from Reuters seeking comment. The White House and the U.S. Treasury Department did not immediately respond to requests for comment.
State refiners Indian Oil, Bharat Petroleum, Hindustan Petroleum and Mangalore Refinery and Petrochemicals are in talks with traders for early delivery of Russian cargoes, according to Reuters sources.
One of the sources said Indian state refiners had so far purchased about 20 million barrels of Russian oil from traders.
HPCL and MRPL last received Russian oil in November, according to data obtained from industry sources.
