The United States has confirmed it will not renew sanctions waivers that had allowed select countries, including India, to continue purchasing Russian and Iranian oil. US Treasury Secretary Scott Bessent announced on Wednesday, signalling a stricter enforcement of energy sanctions.
“We will not be renewing the general license on Russian oil, and we will not be renewing the general license on Iranian oil. That was oil that was on the water before March 11. So all that has been used,” said Bessent at a press conference.
The temporary permissions had been introduced earlier to prevent disruption in the global energy supply. On March 12, Washington issued a 30-day waiver permitting Indian refiners to buy Russian oil that had already been loaded onto ships before the deadline.
“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 authorises transactions involving oil already stranded at sea,” Bessent had said while announcing the waiver.
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Deadlines and market impact
The waiver for Russian oil expired on April 11, while the one covering Iranian oil is set to lapse on April 19. These measures were initially justified as a way to stabilise crude prices, which had crossed $100 per barrel following the escalation of the US-Iran conflict in late February.
India emerged as a major beneficiary during this window. Reports suggest the country placed orders for nearly 30 million barrels of Russian oil under the waiver period.
India and Asian nations sought extension
Despite growing pressure from Asian economies, including India, the US Treasury has chosen not to extend the relief. Indian refiners such as Reliance had earlier reduced purchases from Russian suppliers like Rosneft and Lukoil after sanctions were tightened.
Political pushback in US
The waiver policy also drew criticism from US lawmakers, particularly Democrats, who argued that it indirectly supported Moscow.
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“No way the Russia sanctions waiver should be extended. Trump’s waiver has handed Russia an extra $150 billion a day to fuel its murderous war machine, killing & kidnapping Ukrainian kids—while it aids Iran with intelligence to target our troops,” said US Senator Richard Blumenthal in a post on X on April 10.
Concerns were echoed by other Democratic leaders. “In addition to flouting notification requirements to Congress under the Countering America’s Adversaries Through Sanctions Act before relaxing sanctions on the Kremlin, Secretary Bessent characterised the license as a temporary and ‘short-term’ measure that would not provide significant financial benefit to the Russian government," the senators said in a joint statement.
"But Russia’s decision to cancel its planned budget cuts demonstrates that, as we warned, Russia is directly benefiting from the administration’s sanctions relief. It is incumbent on the Trump Administration to reverse this dangerous policy, ensure that Russia does not reap any additional benefit and prevent the United States from further boosting Putin’s war machine,” they added.
