India gets 30-day US waiver to buy stranded Russian oil cargoes

The United States has granted a temporary 30-day waiver allowing Russian oil cargoes stranded at sea to be sold to India, in a move designed to prevent disruptions in global energy supply as geopolitical tensions escalate.

Two senior US officials confirmed that the waiver applies only to Russian crude shipments that had already been loaded onto tankers before the latest round of American restrictions took effect but were left without buyers after sanctions tightened.

The measure allows those cargoes to be offloaded and sold to Indian refiners within a limited window, ensuring that the stranded oil continues to flow into global markets rather than being removed from supply.

Confirming the development, Scott Bessent said the decision reflected India’s importance as a strategic partner and was intended to ease pressure on energy markets.

“India is an essential partner of the United States,” Bessent said, adding that the waiver would act as a stop-gap measure to alleviate market pressure triggered by attempts to disrupt global energy supplies during the ongoing conflict involving Iran.

“To enable oil to keep flowing into the global market, the US is issuing a 30-day waiver to allow Indian refiners to purchase Russian oil,” he said, noting that the exemption would apply only to cargoes already at sea and would not significantly boost revenues for Moscow.

India’s supply concerns

The waiver comes at a time when India faces heightened vulnerability to disruptions in Middle Eastern energy supplies.

According to Reuters, the country maintains crude reserves covering only about 25 days of demand and imports nearly 40% of its oil from the region. Much of that supply passes through the strategically crucial Strait of Hormuz.

Iran has effectively closed the strait during its ongoing confrontation with the United States, raising fears of a major disruption to global oil flows. The waterway normally handles nearly one-fifth of the world’s crude shipments.

India, one of the world’s largest crude importers, has become a major buyer of discounted Russian oil since Western sanctions were imposed after Russia’s invasion of Ukraine in 2022.

However, New Delhi began scaling back Russian purchases earlier this year under pressure from Washington, which has sought to limit Moscow’s energy revenues linked to the Ukraine conflict. Reducing imports also helped India avoid potential US tariffs of up to 25% and secure an interim trade arrangement with Washington.

Refiners move to secure cargoes

Indian state-run refiners have already moved to secure the available Russian shipments.

Companies including Indian Oil Corporation, Bharat Petroleum Corporation Limited, Hindustan Petroleum Corporation Limited and Mangalore Refinery and Petrochemicals Limited are in talks with traders to purchase Russian crude for prompt delivery, Reuters reported, citing sources familiar with the discussions.

One source said Indian state refiners have already bought around 20 million barrels of Russian oil from traders.

For some refiners, the purchases mark a return to Russian supply. Hindustan Petroleum and Mangalore Refinery last received Russian cargoes in November, according to industry data.

Traders are currently offering Russia’s Urals crude to Indian buyers at a premium of USD 4–5 per barrel to Brent for shipments arriving in March and early April. The pricing marks a sharp turnaround from February, when similar cargoes were trading at discounts of nearly USD 13 per barrel below Brent.

Private sector major Reliance Industries has also reportedly approached traders to secure prompt Russian cargoes.

A trader involved in Russian oil sales to India told Reuters that supply availability, rather than pricing, has become the key concern for refiners.

“India refiners are back in the market. Nowadays more than prices, availability of molecules is the issue,” the trader said.

The US decision reflects concerns that blocking the stranded cargoes entirely could remove significant volumes of crude from global markets at a time when oil prices remain volatile due to rising tensions in West Asia and disruptions to major shipping routes. By allowing the shipments to reach India, Washington hopes to maintain supply stability and prevent sharp price spikes that could fuel global inflation.