US Treasury Issues 30-Day Waiver for India to Purchase Russian Oil Stranded at Sea
The United States Treasury Department has taken a significant step to address global energy market disruptions by issuing a temporary 30-day waiver on Thursday. This authorization specifically permits Indian refiners to purchase Russian oil that is currently stranded at sea, marking a notable shift in Washington's approach to energy sanctions.
A Deliberately Short-Term Measure
Treasury Secretary Scott Bessent emphasized the limited nature of this authorization in a statement posted to social media platforms. "This deliberately short-term measure will not provide significant financial benefit to the Russian government," Bessent stated unequivocally. "It only authorizes transactions involving oil already stranded at sea."
Bessent characterized the waiver as a "stopgap measure" designed specifically to keep oil flowing into the global market during a period of significant disruption. The Middle East crisis has created substantial challenges for crude shipments, particularly affecting nations dependent on oil imports through critical shipping lanes.
India's Energy Vulnerability and Strategic Position
India finds itself in a particularly vulnerable position regarding energy security. The nation maintains crude oil stocks covering only approximately 25 days of demand, creating significant exposure to supply disruptions. Historically, India has sourced about 40% of its oil imports from the Middle East, primarily through the strategically vital Strait of Hormuz.
This vulnerability has become more pronounced as Indian refiners actively seek millions of barrels of prompt Russian crude oil cargoes. According to six sources familiar with the matter who spoke with Reuters, these purchases represent India's attempt to navigate an increasingly tight oil supply situation triggered by escalating Middle East tensions.
Washington's Evolving Stance on Russian Oil Purchases
The waiver announcement follows months of sustained pressure from Washington urging New Delhi to avoid purchasing Russian barrels. This pressure campaign formed part of broader international efforts to reduce financial resources flowing to Moscow's military operations in Ukraine.
India emerged as the top buyer of Russian seaborne crude following Moscow's 2022 invasion of Ukraine. However, beginning in January, Indian refiners started reducing these purchases in response to Washington's diplomatic efforts. This reduction helped New Delhi avoid substantial 25% tariffs and facilitated the negotiation of an interim trade agreement with the United States.
A source directly involved with the matter revealed that India had approached the Trump administration seeking approval to resume Russian crude imports specifically due to the Iran conflict's impact on energy markets.
Current Transactions and Industry Response
Major Indian state refiners including Indian Oil, Bharat Petroleum, Hindustan Petroleum, and Mangalore Refinery and Petrochemicals are currently engaged in discussions with traders regarding prompt delivery of Russian cargoes. One source indicated that Indian state refiners have already purchased approximately 20 million barrels of Russian oil from traders in recent transactions.
Industry data reveals that Hindustan Petroleum and Mangalore Refinery last received Russian oil shipments in November, highlighting the renewed urgency of current negotiations. Neither India's oil and foreign ministries nor the White House and US Treasury Department responded immediately to requests for comment regarding these developments.
Bessent concluded his statement by framing the waiver as a necessary measure to counter broader geopolitical energy manipulation. "This stopgap measure will alleviate pressure caused by Iran's attempt to take global energy hostage," he asserted, while simultaneously expressing Washington's expectation that India would eventually increase purchases of US oil as a longer-term solution.
