India is set to begin purchasing Russian crude oil currently stranded at sea after the United States issued a temporary waiver allowing Indian refiners to undertake limited transactions as tensions in West Asia threaten global energy supplies.
The US Treasury Department has granted a 30-day waiver permitting Indian refiners to buy Russian oil cargoes that are already loaded on vessels and awaiting buyers.
The measure is intended as a short-term arrangement to keep oil flowing into global markets without significantly benefiting Russia.
US Treasury Secretary Scott Bessent said the decision is narrowly structured to address supply disruptions while maintaining existing pressure on Moscow.
“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,” Bessent said.
He clarified that the waiver applies only to cargoes already stranded at sea and would not generate substantial financial gains for the Russian government.
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The development comes as the escalating crisis around the Strait of Hormuz threatens one of the world’s most critical energy corridors.
India imports roughly 40 per cent of its crude oil through the strait, making the disruption particularly significant for the country’s energy security.
Reports indicate that Russia has positioned about 9.5 million barrels of crude on vessels near Indian waters, offering an immediate supply option for refiners dealing with tightening markets.
India’s refiners collectively process around 5.6 million barrels of crude per day, while existing domestic stocks cover roughly 25 days of demand, highlighting the urgency of maintaining stable supply lines.
Russian crude imports into India had earlier declined to about 1.1 million barrels per day in January—the lowest level since November 2022—before recovering to around 30 per cent of India’s overall oil imports in February.
According to industry sources cited in media reports, Indian refiners remain in regular contact with Russian suppliers, though any major increase in purchases will depend on government guidance as trade discussions with the United States continue.
