US grants 30-day waiver for India to buy 'stranded' Russian oil

The United States will allow Indian refiners to purchase certain Russian oil cargoes for the next 30 days in a temporary waiver, US Treasury Secretary Scott Bessent said Thursday amid disruptions in global energy markets.

The Treasury Department said the short-term authorisation would allow the delivery of Russian crude and petroleum products that were already loaded on vessels as of early March 5 and are currently stranded at sea, provided they are delivered to ports in India by early April.

In a post on social media platform X, Bessent said the waiver was intended to keep oil flowing into global markets and ease pressure “caused by Iran’s attempt to take global energy hostage.”

“President Trump’s energy agenda has resulted in oil and gas production reaching the highest levels ever recorded,” Bessent said. “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.”

He said the measure was deliberately limited in scope and duration and would not significantly benefit the Russian government financially because it applies only to cargoes that had already been loaded before the authorisation took effect.

A Reuters report, citing an industry source, suggested that Russia was prepared to redirect crude shipments to India amid disruption in oil supplies from the closure of the key supply route of the Strait of Hormuz.

The report didn't mention where the cargoes were originally headed but said they could deliver to India within weeks, giving refiners rapid relief.

Russia also claimed that India has signalled “renewed interest” in importing larger volumes of Russian crude amid the disruptions in energy supplies.

"Yes, we are getting signals of renewed interest from India,” Deputy Prime Minister Alexander Novak told state-run TV Rossiya 1 on the sidelines of an event in Moscow.

India's procurement of crude oil from Russia has seen sharp fall in the last few weeks.

US President Donald Trump, while announcing a trade deal with New Delhi last month, claimed India has agreed to not procure crude oil from Russia.

In an executive order, Trump had rolled back an additional 25% tariffs on India that he imposed in August last year for India's procurement of crude oil from Russia.

In the order, the US said it would monitor whether India resumed Russian oil purchases directly or indirectly and that would determine whether a 25% tariff would again be re-imposed.

The waiver, issued by the Treasury Department’s Office of Foreign Assets Control (OFAC), allows related logistical and safety activities, including docking, insurance, crewing, vessel management and emergency repairs, for ships carrying the cargo.

However, the authorisation does not allow other transactions prohibited under US sanctions, including any dealings involving Iran or Iranian-origin goods and services.

Bessent described India as an “essential partner” of the United States and said Washington expects New Delhi to increase imports of American oil in the future.

“This stop-gap measure will alleviate pressure caused by Iran’s attempt to take global energy hostage,” he said.