“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,” US Treasury Secretary Scott Bessent said in a statement posted on social media.
He added that the measure is deliberately short-term and will not provide a meaningful financial benefit to Moscow, as it only authorises transactions involving oil already stranded at sea.Bessent described the move as a stopgap measure, noting that Washington expects India to gradually increase purchases of US crude instead.
“This stopgap measure will alleviate pressure caused by Iran’s attempt to take global energy hostage,” he said.
The decision is aimed at easing supply pressures in global markets amid disruptions linked to tensions in the Middle East. Under the waiver, Indian refiners can accept shipments that are already in transit.According to a Reuters report, Indian refiners have started buying millions of barrels of prompt Russian crude cargoes as the country navigates an oil supply crunch triggered by the Middle East conflict.
Bessent’s announcement comes after months of pressure from Washington on New Delhi to curb purchases of Russian crude in order to limit funding for Moscow’s war effort following the Russian invasion of Ukraine.
India had emerged as the largest buyer of Russian seaborne crude after the 2022 invasion. However, refiners began reducing purchases in January amid mounting pressure from the US.
Cutting Russian oil imports also helped New Delhi avoid proposed 25% tariffs and secure an interim trade arrangement with Washington.
State-run refiners including Indian Oil Corporation, Bharat Petroleum Corporation, Hindustan Petroleum Corporation and Mangalore Refinery and Petrochemicals are currently in talks with traders for prompt delivery of Russian cargoes, Reuters reported, citing sources.
Indian state refiners have reportedly purchased around 20 million barrels of Russian oil from traders so far.
Data from industry sources also shows that Hindustan Petroleum Corporation and Mangalore Refinery and Petrochemicals last received Russian crude shipments in November.
