The United States has authorized India to purchase Russian oil that is already stranded at sea, providing a temporary waiver designed to stabilize global oil supplies amid ongoing tensions in West Asia. Scott Bessent, an aide to President Trump, praised India as a “very good actor” due to its previous compliance with U.S. requests to halt purchases of sanctioned Russian oil. This waiver is aimed at easing supply pressures currently affecting the global market.
The U.S. issued a 30-day waiver allowing the sale of Russian crude on ships en route to India, with Bessent explaining that the measure is intended to address short-term supply constraints. “The world is very well supplied in oil,” he stated in an interview with Fox Business. “The Treasury Department agreed to let our allies in India start buying Russian oil that was already on the water.” Bessent indicated that the U.S. had previously requested India to stop buying sanctioned Russian oil in the fall, a request the country honored in favor of U.S. imports.
Highlighting the volume of sanctioned crude still at sea, Bessent noted there are “hundreds of millions of barrels” floating, which suggests that easing restrictions could boost supply. “By unsanctioning them, Treasury can create supply,” he added, while confirming that more measures to relieve market pressures would be considered during the ongoing conflict.
U.S. Energy Secretary Chris Wright echoed this sentiment, stating that the decision to allow India to refine and market Russian oil was a pragmatic step to move existing supplies efficiently. “We have implemented short-term measures to help keep oil prices down,” he said. Wright acknowledged the constraints resulting from the situation in the Strait of Hormuz and emphasized that this action is temporary, aimed solely at alleviating immediate pressures.
The waiver comes at a time when energy supplies through the strategically significant Strait of Hormuz are under threat due to regional tensions. The U.S. Treasury Department issued an order granting a 30-day license for the delivery and sale of Russian petroleum to India. Bessent reiterated that while this step would assist in maintaining oil supplies, it would not significantly benefit the Russian government as it involves only oil already stranded at sea.
India’s position on oil supply remains strong, with current imports averaging about 5.5 to 5.6 million barrels per day, representing nearly 90% of its domestic consumption. Despite the backdrop of regional tensions, officials maintain that the country’s energy security is not significantly compromised. Approximately 15 million barrels of crude are reportedly on tankers in the Arabian Sea and the Bay of Bengal, with an additional seven million barrels awaiting near Singapore.
Following the imposition of tariffs on Indian imports of Russian oil in response to financial concerns linked to Russia’s actions in Ukraine, the U.S. lifted these tariffs after reaching an interim trade agreement with India. In February, India imported slightly over one million barrels of Russian crude per day, a notable increase from 0.2% before the Ukraine conflict began.
As the situation continues to evolve, the U.S. and India appear committed to navigating the complexities of the global energy market, balancing supply demands while addressing geopolitical challenges.
Original Source: https://timesofindia.indiatimes.com/business/india-business/indians-been-good-actors-why-us-agreed-to-let-india-resume-buying-russian-oil-temporarily/articleshow/129191721.cms
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Publish Date: 2026-03-07 08:39:00
