US gives India 30-day waiver to buy Russian oil shipments stuck at sea

Indian refiners buying prompt Russian oil as Iran war hits supplies, sources say

Indian refiners are purchasing millions of barrels of prompt Russian crude cargoes as the country seeks to mitigate potential supply disruptions caused by escalating tensions in the Middle East, six sources familiar with the matter told Reuters.

The US Treasury Department issued a 30-day waiver permitting Indian refiners to purchase Russian crude already in transit, the officials said. They further added that the exemption allows those shipments to proceed despite sanctions on Russia’s energy sector. The move is aimed at easing pressure on global oil markets amid rising geopolitical tensions.

The purchases come after months of pressure from Washington urging New Delhi to reduce imports of Russian oil to limit revenue flowing to Moscow’s war effort in Ukraine. However, the US Treasury Department has now issued a temporary waiver allowing India to buy Russian crude currently stranded at sea.

"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," Treasury Secretary Scott Bessent ⁠said.

"This deliberately short-term measure will not provide significant financial benefit to the Russian government as it only authorizes transactions involving oil already stranded at sea," he said in a statement.

He described the move as a stopgap measure, adding that Washington expects India to eventually increase purchases of US crude.

The waiver applies only to cargoes already at sea and is intended to ease pressure on global oil markets amid geopolitical tensions.

Indian refiners step up purchases

State-run refiners, including Indian Oil Corp, Bharat Petroleum Corp, Hindustan Petroleum Corp, and Mangalore Refinery and Petrochemicals Ltd, have been in talks with traders to secure prompt Russian crude deliveries, Reuters sources said.

One source said Indian state refiners have purchased about 20 million barrels of Russian oil from traders so far. HPCL and MRPL last received Russian crude in November, according to industry data.

Three traders said Russian Urals crude is currently being offered to India at a premium of $4–$5 per barrel over Brent on a delivered basis for shipments arriving at Indian ports in March and early April. This marks a sharp shift from the roughly $13-per-barrel discount offered in February before the conflict began on February 28.

HPCL had purchased two cargoes at that earlier discount shortly before the conflict began. “India refiners are back in the market ... nowadays more than prices, availability of molecules is the issue,” said a trader involved in Russian oil sales to India.

According to the same source, Reliance Industries has also approached traders to secure prompt Russian crude cargoes.

India faces energy supply risks

India remains highly vulnerable to disruptions in Middle Eastern energy supplies. The country holds crude reserves covering only about 25 days of demand and imports roughly 40% of its oil from the region.

Much of that supplies pass through the strategically vital Strait of Hormuz, making any regional conflict a potential risk to India’s energy security. The temporary US waiver is therefore seen as a short-term measure to ensure continuity of supply while global markets adjust to the evolving geopolitical situation.

India’s oil and foreign ministries did not respond to Reuters’ requests for comment. The White House and the US Treasury Department also did not immediately comment on the development.