US Grants India 30-Day Waiver For Russian Oil Purchases

US grants India a 30-day waiver to purchase Russian oil amid Iran conflict.

Archival photo of Indian PM Modi (Left) and US President Trump (Right) used for representational purposes.

(Photo: PTI/AP)

The United States has granted India a temporary 30-day waiver permitting Indian refiners to purchase Russian oil. The waiver, announced by US Treasury Secretary Scott Bessent, is intended to stabilise global energy markets following disruptions caused by the ongoing conflict involving Iran, the US, and Israel. The measure applies only to Russian oil already loaded onto vessels before 5 March 2026 and delivered to India by Indian entities. The waiver is set to expire at 12:01 a.m. Washington time on 4 April 2026.

According to Hindustan Times, the US administration clarified that this short-term measure is designed to prevent significant financial benefit to the Russian government, as it only authorises transactions involving oil already stranded at sea. The waiver follows the recent removal of a 25% tariff penalty on India for previous Russian energy purchases.

The US Treasury Department issued a general licence titled "Authorizing the Delivery and Sale of Crude Oil and Petroleum Products of Russian Federation Origin Loaded on Vessels as of March 5, 2026 to India." The licence specifies that only transactions necessary for the sale, delivery, or offloading of such oil at Indian ports are permitted, and only if the purchaser is an entity organised under Indian law.

The waiver does not authorise any other transactions or activities prohibited by other executive orders, including those involving Iran or Iranian-origin goods. The US government emphasised that India is considered an essential partner and expressed expectations that New Delhi will increase purchases of US oil in the future.

As highlighted by The Guardian, the waiver was issued amid heightened concerns over global energy security, with the Strait of Hormuz facing disruptions due to the Iran conflict. The region is a critical corridor for global oil shipments, and any blockage could significantly impact energy supplies worldwide.

"This stop-gap measure will alleviate pressure caused by Iran’s attempt to take global energy hostage," US Treasury Secretary Scott Bessent stated, as cited in multiple sources.

Further details indicate that Indian refiners and government officials had been considering contingency measures, including turning to Russian cargoes near Indian waters, as supplies from the Gulf region became uncertain. The waiver provides India with an alternative source of crude oil during this period of instability.

Recent coverage revealed that the US expects India to ramp up purchases of American oil as part of a broader trade framework announced last month. The agreement included the removal of punitive tariffs on Indian goods and a commitment from India to increase imports from the US.

Senior US officials confirmed the waiver’s issuance following statements to international media, reiterating that the measure is temporary and applies only to oil already in transit as of the specified date.

"The license is valid only for a short period and will expire on April 4 at 12:01 a.m. Washington time," a source explained, underscoring the limited scope of the approval.

At the end of the waiver period, reporting indicated that transactions covered under this special approval will no longer be allowed unless new guidance is issued. The move is intended to provide India with energy security options while maintaining pressure on Russia and responding to the evolving situation in the Persian Gulf.

Note: This article is produced using AI-assisted tools and is based on publicly available information. It has been reviewed by The Quint's editorial team before publishing.