In a move aimed at stabilizing global energy markets during heightened geopolitical turmoil, the United States has issued a limited 30-day waiver permitting Indian refiners to purchase Russian crude oil and petroleum products. The authorization, announced on Friday by US Treasury Secretary Scott Bessent, covers oil of Russian origin loaded onto vessels as of March 5, 2026, and allows transactions through the end of April 3, 2026.
The US Treasury Department’s Office of Foreign Assets Control issued the Russia-related license specifically to facilitate the delivery and sale of such cargoes to India. This step addresses disruptions caused by the ongoing war involving the US, Israel, and Iran, which has severely impacted oil production and transit in the Middle East.
Strikes on key facilities—including Saudi Aramco’s Ras Tanura refinery and Iraq’s Rumaila oil field—combined with Iran’s blockade of the Strait of Hormuz, a critical chokepoint carrying about 20% of the world’s oil supplies, have driven up global prices. Brent crude reached $83.07 per barrel earlier today amid the volatility.
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Secretary Bessent emphasized the temporary nature of the measure in a post on X. He stated that President Trump’s energy policies have led to record US oil and gas production levels. The waiver, he explained, enables continued flow into global markets without providing substantial financial benefit to the Russian government, as it applies only to oil already stranded at sea due to existing sanctions.
Bessent described India as an “essential partner” of the United States and expressed confidence that New Delhi would increase its purchases of American oil in response. He framed the waiver as a “stop-gap measure” to counter what he called Iran’s efforts to “take global energy hostage.”
The decision follows earlier US sanctions on Russian oil companies like Lukoil and Rosneft, imposed last November to pressure Moscow over its actions in Ukraine. Those measures had contributed to a drop in India’s Russian crude imports to around 1.1 million barrels per day in January—the lowest since November 2022—reducing Moscow’s share of India’s overall imports to 21.2%. Industry data indicate the share rebounded to about 30% in February.
Despite the surge in international oil prices triggered by the conflict, sources indicate no immediate plans to raise petrol or diesel prices in India.