US Extends Waiver On Russian Crude Oil Purchase In Relief To India

The United States on Monday extended the waiver on buying Russian oil for a month, providing relief to India.

US Treasury Secretary Scott Bessent announced that Russian crude oil-laden vessels stranded at sea could be bought by countries facing an energy crisis for the next 30 days.

“@USTreasury is issuing a temporary 30-day general license to provide the most vulnerable nations with the ability to temporarily access Russian oil currently stranded at sea. This extension will provide additional flexibility, and we will work with these nations to provide specific licenses as needed. This general license will help stabilise the physical crude market and ensure oil reaches the most energy-vulnerable countries,” Bessent said in a post on X.

The move is expected to provide relief to India, whose imports of Russian oil had increased in the last few months after the start of the war in West Asia.

Until last year, Russia was the biggest supplier of crude oil to India. However, the Narendra Modi government had to almost end its crude oil purchases from Russia in February after the United States imposed additional tariffs on Indian goods in order to sever trade ties.

However, the US-led war against Iran led to the closure of the Strait of Hormuz, a key passage for global energy trade.

In March, the US announced a waiver for Russian oil. The waiver has been extended twice since then.

While India has maintained that its purchase of Russian oil is based purely on commercial considerations, market experts see the extension of the waiver as a relief for Indian companies.

“Regarding the American waiver on Russia, I would like to emphasise that we have been purchasing from Russia earlier, before the waiver also, during the waiver also, and now also. So, it is basically the commercial sense, which should be there for the OMCs (oil marketing companies) to purchase (Russian oil),” Petroleum Ministry Joint Secretary Sujata Sharma said on Monday afternoon.