Daijiworld Media Network - Washington
Washington, Mar 6: The United States on Thursday issued a temporary waiver permitting stranded Russia oil cargoes already at sea to be sold to India, aiming to ease pressure on global energy markets amid disruptions caused by the ongoing US-Iran conflict escalation.
The waiver applies specifically to Russian crude shipments that had been loaded onto tankers before the latest round of US restrictions came into force but were left without buyers as sanctions tightened. Officials said the move allows those cargoes to be offloaded in India within a limited timeframe, preventing supply shortages that could push global oil prices higher.
Confirming the decision, Scott Bessent, US Treasury Secretary, said India remains a key strategic partner. “India is an essential partner of the United States,” he said, adding that the measure would help counter **Iran’s attempts to disrupt global energy flows.
“To enable oil to keep flowing into the global market, the US is issuing a 30-day waiver to allow Indian refiners to purchase Russian oil,” Bessent said. He clarified that the waiver applies only to cargoes already at sea and would not significantly boost revenues for Moscow.
The decision comes as India faces potential disruptions in Middle Eastern energy supplies. According to reports, the country’s crude reserves cover only about 25 days of demand, while nearly 40 per cent of its oil imports come from the Middle East, much of it passing through the strategic Strait of Hormuz. The waterway handles roughly 20 per cent of global oil shipments, making it a critical chokepoint in world energy trade.
State-run refiners including Indian Oil Corporation, Bharat Petroleum Corporation, Hindustan Petroleum Corporation, and Mangalore Refinery and Petrochemicals Limited are reportedly in talks with traders to secure Russian crude for immediate delivery.
Industry sources said Indian state refiners have already purchased around 20 million barrels of Russian oil from traders. For some companies, this marks a return to Russian supplies. Both Hindustan Petroleum and Mangalore Refinery last received Russian crude shipments in November, according to industry data.
Traders are currently offering Russian Urals crude to Indian buyers at a premium of USD 4–5 per barrel above Brent, delivered for cargoes arriving in March and early April.
Meanwhile, Reliance Industries has also reportedly approached traders to secure prompt Russian cargoes.
The pricing represents a sharp shift from February, when similar shipments were trading at about USD 13 per barrel below Brent, traders said. Hindustan Petroleum had purchased two cargoes at that earlier discount shortly before the latest conflict began on February 28.
A trader involved in Russian oil sales to India said availability of crude, rather than pricing, has become the main concern. “Indian refiners are back in the market. Nowadays more than prices, availability of molecules is the issue,” the trader told Reuters.
Analysts say Washington’s decision was driven by concerns that blocking the shipments entirely could remove large volumes of crude from global markets at a time of heightened volatility. By allowing the stranded cargoes to reach India, the US hopes to stabilise supply and prevent sudden price spikes that could impact global inflation and energy security.