The United States has granted India a temporary 30-day waiver allowing its refiners to buy Russian crude and petroleum products that had already been loaded onto vessels before 5 March, marking a limited easing of pressure on New Delhi’s purchases of Russian energy.
The move was announced by US Treasury Secretary Scott Bessent, who said the measure was intended to keep oil flowing into the global market at a moment of heightened supply risk linked to the conflict in the Gulf and wider Middle East.
According to the terms, the waiver applies only to oil that is already in transit and does not reopen unrestricted trade in Russian crude. Bessent said the step was a short-term safeguard rather than a strategic policy reversal, arguing that it would not deliver significant additional income to the Russian state because it covered cargoes already stuck at sea. In practice, the decision offers Indian refiners a narrow legal channel to secure deliveries that might otherwise have remained stranded as Washington tries to balance sanctions policy with concern over global energy disruption.
The announcement is significant because it follows months of US pressure on India to curb purchases of Russian oil. In early February, President Donald Trump removed an additional 25% tariff on Indian imports after New Delhi committed to stop buying Russian Federation oil, according to the White House. The tariff rollback was tied to India’s pledge to halt Russian oil purchases. That made Thursday’s waiver a notable, if narrowly drawn, adjustment in Washington’s approach.
Washington lowers tariffs on Indian goods after Modi commits to stop buying Russian crude
US officials are presenting the measure as a stopgap designed to address immediate market conditions rather than to soften their broader stance on Russia. Bessent also underscored India’s importance as a US partner and said he expected New Delhi to increase purchases of American crude. That point matters politically as well as commercially. Washington appears to be trying to preserve the larger framework of closer US-India trade and energy ties while avoiding a sudden tightening of oil supply at a moment when Middle Eastern routes and flows are under strain.
For India, the waiver provides tactical relief rather than a long-term solution. Reuters reported that Indian refiners had already begun drawing on Russian crude stored aboard vessels off the Indian coast, with about 9.5 million barrels accessible within weeks and significantly larger volumes on the water across the wider Indian Ocean region. India’s vulnerability to supply shocks has sharpened amid the current Middle East crisis, and refiners appear willing to take available Russian cargoes when price and logistics make sense. The waiver therefore reflects not only diplomacy but also the practical realities of India’s import dependence and refining needs.
The broader market implication is that the United States is trying to prevent sanctions enforcement from colliding with energy security. If Russian cargoes already loaded were blocked entirely, some crude could be left idle while freight patterns adjust and alternative suppliers are sought. At a time when traders are already reassessing Gulf exposure, Washington seems to have judged that a tightly limited exception is preferable to additional turbulence in prices and supply chains. Reporting from the Wall Street Journal and Bloomberg indicated that the measure is explicitly linked to stabilising energy markets during the present regional crisis.
That does not mean the policy contradiction has disappeared. Last month, the White House was presenting India’s commitment to end Russian oil purchases as part of a wider bilateral trade breakthrough. Now, under market pressure, Washington has authorised a temporary channel for imports of Russian oil already afloat. The shift illustrates how energy policy, sanctions policy and geopolitical partnership rarely move in perfect alignment. The United States still wants India to buy more American oil and reduce reliance on Russian barrels, but it is also unwilling to risk a fresh shock to the market in the middle of a regional conflict.
For New Delhi, the message is equally clear. The waiver gives refiners room to manage immediate supply needs, but only for a defined period and only for cargoes already loaded. Unless a further exception is granted, India will still face pressure to shift away from Russian crude in favour of other suppliers, including the United States. What emerged on 6 March is therefore not a durable policy reset, but a narrow emergency accommodation shaped by two competing priorities: sanctioning Russia and keeping the oil market functioning.
