Agencies | New York: The United States has temporarily allowed India to purchase Russian oil already in transit at sea, a move aimed at stabilising global energy supplies amid rising tensions in West Asia.
US Treasury Secretary Scott Bessent said the decision was taken to ease short-term supply disruptions caused by the ongoing conflict in the region and constraints around the Strait of Hormuz.
Speaking to Fox Business, Bessent said Washington had permitted its “allies in India” to buy Russian crude that was already on ships across global waterways.
“The Indians have been very good actors. We had asked them to stop buying sanctioned Russian oil this fall, and they did. They were planning to substitute it with US oil. But to ease the temporary gap in global supply, we have given them permission to accept the Russian oil already on the water,” Bessent said.
The development marks a short-term shift in policy from the administration of Donald Trump, which had earlier imposed a 25 percent punitive tariff on India for continuing to purchase Russian energy following Western sanctions on Moscow.
The US Treasury Department later issued a temporary 30-day waiver allowing Indian refiners to purchase Russian crude that had already been loaded onto vessels before March 5, 2026. The authorisation remains valid until April 4, 2026, provided the cargo is delivered to Indian ports and handled by entities registered under Indian law.
US Energy Secretary Chris Wright said the decision was part of a short-term strategy to keep oil markets stable.
“We are allowing our friends in India to take oil that is already on ships, refine it, and move those barrels quickly into the market. It’s a practical way to keep supply flowing and ease pressure,” Wright wrote on social media platform X.
He added that several shipments of Russian crude had been stranded in floating storage around South and East Asia after buyers reduced purchases due to sanctions and geopolitical tensions.
According to US officials, allowing India to process these barrels would help stabilise global markets by freeing up supply and reducing competition among refineries worldwide.
Bessent emphasised that the waiver was a limited and temporary measure and does not represent a broader shift in US policy towards Russia.
“This deliberately short-term measure will not significantly benefit the Russian government because it only involves oil that is already stranded at sea,” he said.
The move comes at a time when global oil markets are under pressure due to heightened geopolitical tensions, particularly the escalating confrontation between Iran, Israel and the United States, which has raised fears of disruptions in one of the world’s most critical energy corridors.
Washington has expressed confidence that India will gradually increase imports of American crude as part of its broader energy cooperation with the United States.
India remains one of the world’s largest energy consumers and has played a key role in balancing global oil demand during the ongoing geopolitical turbulence.
