Amid Iran conflict, US issues short-term waiver for India to import Russian oil

The United States has issued a temporary 30-day waiver allowing Indian refiners to purchase Russian oil, citing the need to maintain global energy supplies during the escalating conflict with Iran.

Announcing the move on Thursday, US Treasury Secretary Scott Bessent said the measure was intended to ensure oil continues flowing into global markets.

“President Trump’s energy agenda has resulted in oil and gas production reaching the highest levels ever recorded. 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 described the step as a short-term arrangement that would not significantly benefit Russia financially.

“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 said.

In a post on X, he added that India remains an important partner for the United States and said Washington expects New Delhi to increase purchases of American energy.

“India is an essential partner of the United States, and we fully anticipate that New Delhi will ramp up purchases of U.S. oil. This stop-gap measure will alleviate pressure caused by Iran’s attempt to take global energy hostage,” Bessent said.

Earlier, US President Donald Trump had imposed 25 per cent punitive tariffs on India for buying Russian oil. The administration had argued that India’s purchases were helping finance Russia’s war against Ukraine.

Last month, the United States and India announced that they had reached a framework for an Interim Agreement on trade. Following the announcement, Trump issued an Executive Order removing the 25 per cent punitive tariffs on India.

The order cited New Delhi’s commitment to stop importing energy from Moscow and increase purchases of American energy products.

A statement from the Department of Treasury titled ‘Authorizing the Delivery and Sale of Crude Oil and Petroleum Products of Russian Federation Origin Loaded on Vessels as of March 5, 2026 to India’ outlined the scope of the waiver.

It said that “all transactions prohibited…that are ordinarily incident and necessary to the sale, delivery, or offloading of crude oil or petroleum products of Russian Federation origin loaded on any vessel, including vessels blocked under the above listed authorities, on or before 12:01 a.m. eastern standard time, March 5, 2026 are authorized through 12:01 a.m. eastern daylight time, April 4, 2026, provided that the delivery or offloading of such crude oil or petroleum products occurs at a port” in India and the purchaser of such crude oil or petroleum products is an entity organised under the laws of India.

The general licence issued by the Treasury Department added that the waiver does not authorise any other transactions or activities prohibited under other Executive Orders.

It also stated that it does not permit any transaction or activity involving Iran, the Government of Iran, or Iranian-origin goods or services that is prohibited by the Iranian Transactions and Sanctions Regulations.

(With inputs from agencies)