The United States has issued a temporary 30-day waiver allowing Indian refiners to purchase Russian crude oil currently stranded at sea, Treasury Secretary Scott Bessent said on Friday, describing the move as a short-term measure to keep global oil supplies flowing amid disruptions linked to the Middle East conflict.
“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 posted on X.
“This deliberately short-term measure will not provide significant financial benefit to the Russian government as it only authorises transactions involving oil already stranded at sea,” he said.
— SecScottBessent (@SecScottBessent)
The decision comes as India scrambles to manage a potential supply crunch triggered by the ongoing conflict in West Asia, which has raised concerns over the security of crude shipments moving through the region.
Bessent described the waiver as a stop-gap step and signalled that Washington ultimately expects India to buy more American crude.
“India is an essential partner of the United States, and we fully anticipate that New Delhi will ramp up purchases of US oil,” he said. “This stop-gap measure will alleviate pressure caused by Iran’s attempt to take global energy hostage.”
India moves to secure supply
According to Reuters, Indian refiners have begun purchasing millions of barrels of Russian crude for prompt delivery as they seek to secure alternative supplies amid uncertainty in the Middle East.
Citing six sources familiar with the matter, Reuters reported that state-run refiners — including Indian Oil Corporation, Bharat Petroleum Corporation Limited, Hindustan Petroleum Corporation Limited and Mangalore Refinery and Petrochemicals Limited — have been in talks with traders for Russian cargoes arriving at Indian ports in March and early April.
One source directly involved in the discussions told Reuters that state refiners have already bought about 20 million barrels of Russian oil from traders.
Industry data cited by Reuters showed that HPCL and MRPL last received Russian cargoes in November.
Russian oil back in demand
Reuters reported that traders are currently offering Russia’s Urals crude to Indian buyers at a premium of $4–$5 per barrel over Brent on a delivered basis, reflecting tight availability.
That marks a sharp shift from February, when similar cargoes were trading at a discount of about $13 per barrel, traders told Reuters. Before the conflict began on February 28, HPCL had purchased two cargoes at that discounted price.
“India refiners are back in the market … nowadays more than prices, availability of molecules is the issue,” one trader involved in Russian oil sales to India told Reuters.
The trader also said that Reliance Industries had approached his company seeking prompt Russian cargoes.
Energy security concerns
India remains highly exposed to supply disruptions in the Middle East. Reuters reported that the country’s crude reserves cover only about 25 days of demand, while roughly 40% of its oil imports come from the region through the Strait of Hormuz.
Following Russia’s 2022 invasion of Ukraine, India became the largest buyer of Russian seaborne crude. However, Reuters reported that Indian refiners began reducing purchases in January after months of pressure from Washington aimed at limiting revenue flows to Moscow’s war effort.
Cutting Russian oil imports helped New Delhi avoid potential 25% US tariffs and contributed to an interim trade agreement between the two countries, according to Reuters.
It remains unclear whether Washington has formally approved a broader increase in Russian purchases to offset potential supply losses from the Middle East.
Reuters also reported that a source involved in the matter said India had approached the administration of Donald Trump seeking permission to resume Russian crude imports because of the Iran conflict.
India’s oil and foreign ministries did not respond to Reuters’ requests for comment, while the White House and the US Treasury Department also did not immediately respond.
