The United States has issued a 30-day waiver allowing India to purchase Russian oil currently stranded at sea, in a move designed to maintain global oil supplies and prevent further price increases amid the Middle East crisis.
Treasury Secretary Scott Bessent announced the temporary measure on Thursday, stating it would 'alleviate pressure caused by Iran’s attempt to take global energy hostage.' The waiver permits Indian refiners to buy Russian crude that is already stuck at sea, providing short-term relief for Asian buyers.
The decision marks a reversal from earlier US policy, when President Donald Trump imposed a 25% tariff on Indian imports of Russian oil in August, arguing that such purchases undermined sanctions related to the war in Ukraine. Bessent noted that the waiver is deliberately short-term and will not significantly benefit Russia financially.
India, which relies on the Middle East for about 40% of its oil imports via the Strait of Hormuz, faces supply disruptions after Iran's effective blockade of the strait following US and Israeli strikes. The crisis has pushed oil prices above $90 a barrel, with warnings from Qatar's energy minister that the conflict could drive prices to $150 a barrel.
Indian state refiners, including Indian Oil and Bharat Petroleum, are in talks to secure Russian cargoes for prompt delivery. The Kremlin has welcomed the increased demand for its energy products, though some analysts question Russia's capacity to boost output further.
Critics, including Global Witness, have accused the US of fueling Russia's war effort, with CEO Mike Davis stating the waiver 'effectively sacrifices the people of Ukraine to combat an oil price crisis that the US and Israel have, themselves, triggered.'
