US Issues Temporary Waiver, Allowing Indian Refineries to Purchase Russian Oil

The United States Department of the Treasury has issued a temporary 30-day waiver allowing Indian refineries to purchase Russian crude oil and petroleum products that were already loaded onto vessels before Thursday, March 5.

The decision comes as global oil prices declined following the announcement, reflecting expectations that the move could ease short-term supply concerns in the market.

According to the licence issued late Thursday, Indian companies will be permitted to complete transactions involving Russian oil shipments that were already in transit. The waiver is designed as a limited and temporary measure to prevent disruptions to energy markets while maintaining existing restrictions on Russian energy trade.

Scott Bessent said the measure is intentionally short-term and will 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 wrote in a post on X.

The waiver allows Indian refiners to secure previously purchased cargoes that might otherwise remain stuck at sea due to regulatory restrictions. Officials said the move ensures smoother market operations while maintaining pressure on Russia’s energy revenues.

India has been one of the largest buyers of discounted Russian crude since the start of the Russia–Ukraine War, making the policy decision particularly relevant for global oil trade flows.

Analysts say the temporary waiver reflects Washington’s attempt to balance geopolitical pressure on Moscow with the need to prevent sudden disruptions in the global energy market.

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