The United States has temporarily eased restrictions on India’s purchase of Russian crude oil, granting a 30-day waiver that allows Indian refiners to buy shipments currently stranded at sea. The waiver was announced by US Treasury Secretary Scott Bessent, who said the move is intended to stabilise global oil flows during a period of geopolitical volatility.
“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 measure as a short-term stopgap and emphasised that it applies only to cargoes already at sea, meaning the move would not significantly boost revenue for Moscow.
India is particularly vulnerable to disruptions in global oil supply because it imports the vast majority of its crude requirements. Nearly 40 percent of India’s oil imports pass through the Strait of Hormuz, one of the world’s most strategically sensitive maritime chokepoints.
With tensions escalating across the Middle East, traders and refiners have raised concerns about potential disruptions to shipments from Gulf producers. Industry sources say Indian refiners have already begun securing alternative supplies, including Russian cargoes that were floating offshore or available for immediate delivery.
According to trading sources familiar with the matter, state-run refiners have been negotiating with traders to purchase Russian crude cargoes for prompt delivery. This includes:
Industry estimates suggest Indian refiners have already secured around 20 million barrels of Russian oil during the latest buying wave. Even private refiners such as Reliance Industries are reported to be exploring purchases.
India became the largest buyer of seaborne Russian crude after Moscow’s invasion of Ukraine in 2022, benefiting from steep discounts on the Urals crude benchmark. However, purchases slowed earlier this year after Washington increased pressure on New Delhi to reduce imports from Russia.
A view of reservoirs of Russian state-controlled oil giant OAO Rosneft, at Priobskoye oil field near Nefteyugansk, in western Siberia, Russia.
Reducing those purchases helped India avoid potential trade penalties, including proposed tariffs from the United States. But the current Middle East conflict has forced refiners to reconsider supply options. Traders say Russian Urals crude is now being offered to Indian buyers at a premium of $4–$5 per barrel above Brent, a sharp shift from the $13 discount seen earlier this year.
India holds crude reserves covering roughly 25 days of domestic demand, making the country highly sensitive to supply disruptions. Officials have therefore prioritised ensuring adequate supply rather than focusing solely on price.
Source: India Latest News, Breaking News Today, Top News Headlines | Times Now
