Amid rising geopolitical tensions and supply disruptions linked to the ongoing US‑Iran conflict, the United States on Thursday issued a temporary waiver allowing Russian oil shipments stranded at sea to be sold to India to ease pressure on global oil markets.
The exemption is specifically for Russian oil cargoes that were already on tankers before the newest US sanctions were implemented but remained unsold due to increased restrictions. Officials state that this provision permits these shipments to be unloaded and sold to India within a restricted timeframe, helping to avoid supply interruptions that might exacerbate global energy market tensions.
The US has given India a 30-day waiver to buy Russian oil shipments already loaded onto tankers before new sanctions left them without buyers. The move prevents supply disruptions and eases pressure on global energy markets.
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." He added the waiver applies only to cargoes at sea and “would not significantly benefit Moscow financially.”
The waiver comes as India remains vulnerable to Middle Eastern energy disruptions. Reuters reports the country holds crude reserves for only about 25 days and imports roughly 40% of its oil from the region, much via the Strait of Hormuz.
Iran has effectively closed the Strait, a chokepoint handling ~20% of global oil, amid its war with the US. India, a major crude importer, became a key buyer of discounted Russian oil after Western sanctions on Moscow in 2022. Earlier this year, it cut purchases under US pressure to avoid 25% tariffs and secure an interim trade deal.
State refiners like Indian Oil, Bharat Petroleum, Hindustan Petroleum, and Mangalore Refinery, are negotiating Russian crude for immediate delivery, with about 20 million barrels already purchased. Hindustan Petroleum and Mangalore Refinery last received shipments in November. Traders are offering Russian Urals crude at a USD 4–5 per barrel premium to Brent for March–April deliveries.
