The United States has allowed India to purchase Russian oil already stranded at sea, issuing a temporary waiver to stabilise global supplies amid disruptions caused by the escalating conflict in West Asia.
US Treasury Secretary Scott Bessent described India as a “very good actor” for previously complying with Washington’s request to stop buying sanctioned Russian crude. He said the short-term measure would help ease pressure in the global oil market.
The move follows a 30-day waiver issued by Washington permitting the sale of Russian crude currently stuck at sea to India.
US cites temporary supply concerns
Speaking to Fox Business, Bessent said the decision was aimed at easing short-term supply constraints during the ongoing crisis.
“The world is very well supplied with oil. The Treasury agreed to let our allies in India start buying Russian oil that was already on the water,” he said.
Bessent noted that India had earlier complied with US requests to halt purchases of sanctioned Russian oil and had planned to replace those imports with American supplies.
“The Indians had been very good actors. We had asked them to stop buying sanctioned Russian oil this fall. They did. They were going to substitute it with US oil,” he said.
“But to ease the temporary gap of oil around the world, we have given them permission to accept the Russian oil. We may unsanction other Russian oil.”
He added that large volumes of sanctioned crude remain stranded at sea.
“There are hundreds of millions of sanctioned barrels of crude on the water,” he said, adding that lifting restrictions on them could help boost supply.
“We are going to keep a cadence of announcing measures to bring relief to the market during this conflict,” Bessent said.
Short-term steps to keep oil prices stable
Other officials in the Trump administration confirmed that Washington has permitted India to buy Russian crude already loaded on ships.
US Energy Secretary Chris Wright said the move was intended to quickly bring existing oil supplies into the market.
“We have implemented short-term measures to help keep oil prices down. We are allowing our friends in India to take oil that is already on ships, refine it, and move those barrels into the market quickly — a practical way to get supply flowing and ease pressure,” Wright said in a post on X.
In an interview with ABC News Live, Wright stressed that the measure was temporary and driven by supply constraints linked to tensions around the Strait of Hormuz.
“As oil prices rise because of constraints coming out of the Strait of Hormuz, we are taking short-term action. There is floating Russian oil storage around southern Asia, with many barrels sitting idle,” he said.
He added that the US had asked India to purchase the oil and process it in its refineries.
“Buy that oil, bring it into your refineries. That immediately pulls stored oil into Indian refineries and reduces pressure on other refineries around the world that would otherwise be competing with India for supply,” Wright said.
“This is no change in policy towards Russia. It is a very brief adjustment intended to keep oil prices from rising further,” he added.
Waiver amid Strait of Hormuz tensions
The US Treasury earlier issued a 30-day licence allowing the delivery and sale of Russian crude and petroleum products to India. The decision comes as shipping routes through the strategically vital Strait of Hormuz face disruptions due to the ongoing regional conflict.
“President Trump’s energy agenda has pushed oil and gas production to record levels. To ensure oil continues flowing into the global market, the Treasury Department is issuing a temporary 30-day waiver allowing Indian refiners to purchase Russian oil,” Bessent said.
He emphasised that the step would not significantly benefit Moscow.
“This deliberately short-term measure will not provide significant financial benefit to the Russian government, as it only authorises transactions involving oil already stranded at sea,” he said.
Bessent added that India remains an important partner for the US and is expected to increase purchases of American energy.
“This stop-gap measure will help relieve pressure created by Iran’s attempt to hold global energy supplies hostage,” he said.
India’s oil supply position
The waiver comes months after the Trump administration imposed 25% punitive tariffs on India over its purchases of Russian oil, arguing that such imports were helping fund Moscow’s war in Ukraine.
Those tariffs were later lifted after both countries reached a framework for an interim trade agreement, under which India agreed to reduce Russian imports while increasing purchases of US energy.
India currently imports about 5.5–5.6 million barrels of crude per day, meeting nearly 90% of its domestic demand. Officials say the country’s energy supply remains stable despite regional tensions.
Around 15 million barrels of crude are currently on tankers in the Arabian Sea and Bay of Bengal, while vessels carrying another seven million barrels are waiting near Singapore. Additional tankers in the Mediterranean and near the Suez Canal are also heading towards Indian ports and could arrive within a week.
Data from Kpler shows India imported slightly over 1 million barrels per day of Russian crude in February, compared with 1.1 million bpd in January and 1.2 million bpd in December.
Before the Ukraine war in 2022, Russian crude accounted for just 0.2% of India’s oil imports. However, purchases surged after Moscow began offering steep discounts following Western sanctions.
