The United States has granted India a 30-day temporary waiver allowing its refineries to continue purchasing Russian energy. The move comes as global energy markets remain tense due to the ongoing conflict involving Iran, the United States and Israel, which has heightened fears of disruptions to oil supply.
The announcement was made on Friday by US Treasury Secretary Scott Bessent on X. He clarified that the measure is limited in scope and would not allow Russia to benefit significantly from the arrangement.
According to Bessent, the waiver "only authorises transactions involving oil already stranded at sea", meaning the decision applies to shipments that are already in transit.
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Limited window for transactions
Reports indicate that 9.5 million barrels of Russian oil were sitting in Asian waters as of last week, according to Bloomberg. The waiver applies only to Russian products loaded onto vessels before March 5 and will expire on April 4 at 12.01 am Washington time.
Bessent said the decision was taken to help ease pressure in global energy markets at a time of rising geopolitical tensions. "India is an essential partner of the United States, and we fully anticipate that New Delhi will ramp up purchases of US oil," he wrote on X.
Strait of Hormuz concerns
Energy markets have grown increasingly volatile following Iran's recent claim that it had closed the Strait of Hormuz, a key maritime route for global oil shipments.
Located between Iran and Oman, the strait links the Persian Gulf to the Gulf of Oman and the Arabian Sea and facilitates roughly 20 per cent of the world's oil and gas supply. Any disruption in this corridor can lead to higher fuel prices, inflation and economic pressure in countries heavily dependent on Middle Eastern crude.
India's oil reserves and supply outlook
Amid the growing uncertainty, the Indian government has said the country currently has adequate reserves. Union minister Hardeep Singh Puri told the Rajya Sabha that India's strategic petroleum reserves can meet demand for about 74 days in the event of global disruptions.
Officials familiar with the matter have also indicated that the West Asia conflict does not pose an immediate threat to India's energy security.
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Russia dismisses speculation
Questions around India's purchases of Russian oil intensified after the United States suggested that New Delhi had committed to halting imports. Indian authorities have not confirmed this claim.
Russia has also rejected suggestions that India might reduce its purchases. "India's purchase of Russian hydrocarbons benefits both countries and helps maintain stability in the international energy market," Foreign Ministry spokesperson Maria Zakharova said.
The discussion around energy ties has come at a time when the United States recently reduced tariffs on imports from India to 18 per cent.
