India's access to crucial energy supplies received a temporary boost on Friday after US Treasury Secretary Scott Bessent announced a 30-day waiver allowing Indian refiners to purchase Russian oil.
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.
The move comes as the administration seeks to stabilise global energy markets amid rising tensions in the Middle East.
Highlighting the importance of the bilateral relationship, Secretary Bessent described India as an "essential partner" of the United States.
In a post on X, he wrote, "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."The post added, "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."
In an effort to pressure Russia over its invasion of Ukraine, US President Donald Trump had imposed sanctions on Russian oil majors Lukoil and Rosneft last November. India's imports of Russian crude fell to about 1.1 million barrels per day in January, the lowest since November 2022, as New Delhi sought relief from US tariffs, pushing 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.
Oil production has been hit across the Middle East amid strikes on major oilfields in the Gulf, with the situation aggravating due to Iran's blockade of the Strait of Hormuz, a narrow maritime chokepoint that handles 20% of global oil supplies.
Saudi Aramco's Ras Tanura refinery and Iraq's Rumaila oil field were among the world's major oil supply units that have been struck over the past few days.
The US and Israel's war against Iran has shot up oil prices amid a prolonged closure of the Strait of Hormuz. Brent crude went up to $83.07 per barrel this morning. However, despite such a hike in global prices, sources have ruled out any possibility of increasing petrol and diesel prices in India.