The President Donald Trump administration has issued a temporary sanctions waiver allowing India to purchase oil cargoes from Russia currently stranded at sea.
According to U.S. Treasury Secretary Scott Bessent, the move is meant to stabilize global energy markets during growing supply disruptions.
Secretary Bessent, on Thursday, March 5, evening, said the waiver will allow Indian refiners to take delivery of Russian crude that had already been loaded on ships before the new authorization took effect.
The measure authorizes transactions related to Russian-origin crude and petroleum products that were loaded onto vessels on or before March 5, 2026, provided the cargo is delivered to ports in India and purchased by companies organized under Indian law.
“To enable oil to keep flowing into the global market, the Treasury Department is issuing a temporary 30-day waiver to allow Indian refiners to purchase Russian oil. This deliberately short-term measure will not provide significant financial benefit to the Russian government as it only authorizes transactions involving oil already stranded at sea.”
U.S. Treasury issues special license to Russia
The policy was formalized through Russia-related General License 133, issued by the Office of Foreign Assets Control.
The license temporarily permits transactions that would otherwise be restricted under several sanctions frameworks targeting Russia and Iran. Those transactions include activities necessary to safely deliver and unload Russian crude shipments already at sea.
According to the license, the authorization covers logistical services, including vessel management, docking, insurance, piloting, and emergency repairs related to the affected cargo.
U.S. officials emphasized that the waiver is a temporary step designed to prevent disruptions in global supply rather than a shift in sanctions policy.
Bessent said Washington expects India to increase purchases of American oil in the longer term, describing the move as a “stopgap measure” aimed at easing pressures in global energy markets.
“India is an essential partner of the United States, and we fully anticipate that New Delhi will ramp up purchases of U.S. oil. This stop-gap measure will alleviate pressure caused by Iran’s attempt to take global energy hostage,” the secretary added.
Also Read: US Navy Ready to Escort Tankers Through Key Oil Shipping Route After Iran Warning
The waiver comes as India confronts a tightening oil supply situation triggered by the escalating conflict in the Middle East, remaining highly exposed to supply disruptions due to its heavy reliance on imported oil.
Industry data shows that the country maintains crude reserves covering roughly 25 days of demand, leaving it vulnerable to sudden supply shocks.
About 40 percent of India’s oil imports originate from the Middle East, with most of those shipments traveling through the strategically vital Strait of Hormuz, a maritime corridor that has become increasingly tense amid regional conflict.
Shift after months of pressure
The waiver marks a notable shift after months of pressure from Washington to reduce India’s purchases of Russian oil.
Following Russia’s 2022 invasion of Ukraine, India emerged as the largest buyer of Russian seaborne crude, taking advantage of discounted prices offered by Moscow.
However, earlier this year, Indian refiners began scaling back those purchases under pressure from the United States.
Reducing imports of Russian oil helped New Delhi avoid 25 percent tariffs and facilitated an interim trade agreement between India and Washington.
The waiver was announced one day after Russian President Vladimir Putin suggested Moscow could further reduce energy exports to Europe.
Also Read: Energy Crisis Looms as Putin Threatens to Cut Europe Off Gas Supplies
Speaking on state television, Putin said the Kremlin is evaluating whether to redirect supplies toward emerging markets offering higher returns.
“Other markets are opening now,” Putin said. “Maybe it’s better for us to end supplies to the European market right now?”
His remarks came as the European Commission prepares to introduce a legislative proposal to phase out Russian oil imports.
Under the plan, the European Union would gradually eliminate Russian pipeline gas and liquefied natural gas imports by 2027. The proposal is expected to be formally presented on April 15.
Follow our WhatsApp Channel and X Account for real-time news updates.
