New Delhi : The United States on Thursday issued a temporary waiver allowing Russian oil cargoes currently stranded at sea to be sold to India. The waiver applies specifically to Russian oil shipments that had already been loaded onto tankers before the latest round of US restrictions took effect but were left without buyers as sanctions tightened.
The measure allows these cargoes to be offloaded and sold to India within a limited window, preventing supply disruptions that could further strain global energy markets. Confirming the development, US Treasury Secretary Scott Bessent, said, India is an essential partner of the United States and this stop-gap measure will alleviate pressure caused by Iran’s attempt to take global energy hostage.
To enable oil to keep flowing into the global market, the US is issuing a 30-day waiver to allow Indian refiners to purchase Russian oil, Bessent said, adding that the temporary waiver would apply only to cargoes already at sea and would not significantly benefit Moscow financially. The country holds crude reserves covering only about 25 days of demand and imports roughly 40 per cent of its oil from the region, much of it shipped through the strategically vital Strait of Hormuz.
India, one of the world’s largest crude importers, has emerged as a key buyer of discounted Russian oil since Western sanctions were imposed following Moscow’s invasion of Ukraine in 2022. However, India began cutting back purchases earlier this year under pressure from Washington, which has sought to curb revenues supporting Russia’s war in Ukraine.
State-run refiners -Indian Oil Corporation, Bharat Petroleum Corporation, Hindustan Petroleum Corporation and Mangalore Refinery and Petrochemicals Limited — are in talks with traders to purchase Russian crude for prompt delivery, Reuters reported, citing six sources familiar with the matter. For some refiners, the purchases mark a return to Russian supply. Hindustan Petroleum and Mangalore Refinery last received Russian crude shipments in November, according to industry data.
Reliance Industries has also reportedly approached traders to secure prompt Russian cargoes. The pricing marks a dramatic shift from February, when similar cargoes were trading at about USD 13 per barrel below Brent, traders said. The US’s decision was driven by concerns that blocking the shipments entirely could remove significant volumes of crude from the market at a time when oil prices remain volatile due to escalating tensions in West Asia and disruptions to shipping routes.
-
-
-
-
