U.S. Issues Temporary Waiver for Indian Refiners to Buy Russian Oil

The United States Treasury Department has announced a temporary 30-day waiver that allows Indian refiners to purchase Russian oil. This decision was made by U.S. Treasury Secretary Scott Bessent on March 6, 2026. The move aims to keep the global oil supply flowing amid the ongoing war in West Asia, which has disrupted oil supplies. The waiver does not provide significant financial benefits to the Russian government as it only allows transactions involving oil that is already stranded at sea. This temporary measure is intended to alleviate pressure caused by Iran’s attempts to take control of global energy supplies. India is a key partner for the United States in terms of oil purchases, and the country is expected to increase its purchases of U.S. oil. The Trump administration had imposed 25% punitive tariffs on India for buying Russian oil, citing that Delhi’s purchases were helping fuel Russia’s war against Ukraine. However, last month, the U.S. and India reached a framework for an interim trade agreement, and Trump removed the punitive tariffs on India, conditional on Delhi stopping imports from Moscow and increasing purchases of American energy products. India has been reducing its Russian oil imports since 2022 and has instead sourced more oil from Gulf countries and the United States. However, the potential trade deal with the U.S. is currently in limbo after the U.S. Supreme Court struck down reciprocal tariffs. The temporary waiver will allow Indian refiners to purchase Russian oil that was already stranded at sea by March 5, 2026. The Department of Treasury issued a statement authorizing all transactions that are normally incident and necessary to the sale, delivery, or offloading of crude oil or petroleum products of Russian origin loaded on any vessel. The waiver is valid until April 4, 2026, provided that the delivery or offloading of such crude oil or petroleum products occurs at a port in India and the purchaser is an Indian entity.