The United States has issued a temporary 30-day waiver allowing Indian refiners to purchase Russian crude oil that is currently stranded at sea. The decision comes as global oil supply faces pressure due to the ongoing conflict in the Middle East.
The waiver was announced by U.S. Treasury Secretary Scott Bessent in a statement posted on X. He said the measure is intended to keep oil flowing into global markets during disruptions linked to the conflict in West Asia.
According to the announcement, the waiver only applies to Russian oil that is already stranded on ships at sea. It does not allow new long-term purchases from Russia. Because of this limited scope, the authorization is not expected to provide significant financial benefit to the Russian government.
Scott Bessent said the short-term move is meant to ease pressure caused by Iran’s attempt to disrupt global energy supplies. He also noted that India remains an essential partner of the United States and that Washington expects New Delhi to increase purchases of American crude oil in the future.
The decision highlights the importance of stable energy supply at a time when geopolitical tensions are affecting major oil routes and global markets.
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Indian Refiners Move Quickly to Secure Supplies
After the waiver was announced, Indian refiners began moving quickly to secure available Russian crude shipments. According to Reuters, several state-run refiners started discussions with traders for cargoes that could arrive at Indian ports in March and early April.
These companies include Indian Oil Corporation, Bharat Petroleum Corporation Limited, Hindustan Petroleum Corporation Limited, and Mangalore Refinery and Petrochemicals Limited. These refiners supply a major share of India’s fuel demand.
Sources familiar with the matter told Reuters that state-run refiners have already purchased around 20 million barrels of Russian oil from traders.
Industry data cited by Reuters showed that Hindustan Petroleum Corporation Limited and Mangalore Refinery and Petrochemicals Limited last received Russian cargoes in November. The recent purchases therefore mark a return to the market for Russian crude.
Private energy company Reliance Industries has also approached traders seeking prompt Russian cargo shipments, according to a trader involved in Russian oil sales.
Market conditions have also shifted quickly. Russia’s Urals crude is currently being offered to Indian buyers at a premium of four to five dollars per barrel above Brent crude prices on a delivered basis.
This represents a sharp change from February, when similar cargoes were trading at a discount of about thirteen dollars per barrel. Before the conflict began on February 28, Hindustan Petroleum Corporation Limited had purchased two cargoes at that discounted price.
Traders involved in the market said refiners are currently focused more on availability of oil than on price.
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Energy Security Concerns Amid Middle East Conflict
India remains highly dependent on imported oil, making energy security a major concern during global disruptions. Industry data shows that the country’s crude reserves can cover only about 25 days of demand.
A significant portion of India’s crude imports comes from the Middle East. Around 40 percent of shipments pass through the Strait of Hormuz, one of the most important oil transport routes in the world.
Any conflict affecting this region can quickly disrupt supply and increase prices. Because of this risk, countries that rely heavily on imported energy often look for alternative suppliers during periods of geopolitical tension.
India became the largest buyer of Russian seaborne crude after Russia’s invasion of Ukraine in 2022. However, Reuters reported that Indian refiners began reducing purchases earlier this year following pressure from Washington aimed at limiting revenue flowing to Moscow’s war effort.
Reducing Russian oil imports also helped New Delhi avoid potential 25 percent tariffs from the United States. According to Reuters, the move contributed to an interim trade agreement between the two countries.
Reuters also reported that a source involved in the matter said India approached the administration of Donald Trump seeking permission to resume Russian crude imports due to concerns over the conflict involving Iran.
For now, the 30-day waiver applies only to Russian oil shipments already stranded at sea, allowing them to reach Indian buyers and helping maintain global oil supply.