Russian Oil Waiver: US Treasury Grants India a 30-Day, Time-Limited Permit

The United States Treasury Department has given India a 30-day waiver to buy Russian oil. The step aimed to soften supply stress tied to the Middle East conflict. It also responded to Iran’s blockade threats near the Strait of Hormuz. US officials said the waiver stayed narrow and did not seek to raise Moscow’s income.

US Treasury Secretary Scott Bessent announced the move in a post on X. Bessent said, "To enable oil to keep flowing into the global market, the Treasury Department is issuing a temporary 30-day waiver to allow Indian refiners to purchase Russian oil, underlining that the concession is time-bound." The waiver covered only Russian cargoes already at sea.

The Treasury issued a general licence with strict eligibility rules for cargoes. Russian-origin crude or products had to be loaded by a fixed cut-off. Trading under the waiver also faced an end time. The licence required delivery to India. Cargoes could not be diverted to any other destination.

Licence condition	Requirement
Loading deadline	On or before 5 March, 12:01 am EST
Trading deadline	Until 12:01 eastern daylight time on 4 April
Destination	Delivered to India, not diverted elsewhere

Bessent said the step only covered oil already stranded at sea. "This deliberately short-term measure will not provide significant financial benefit to the Russian government as it only authorises transactions involving oil already stranded at sea," Bessent said. The Treasury Secretary linked the waiver to an immediate supply squeeze.

Bessent also pointed to India’s energy ties with the US. "India is an essential partner of the United States, and we fully anticipate that New Delhi will ramp up purchases of US oil. This stop-gap measure will alleviate pressure caused by Iran's attempt to take global energy hostage," Bessent added. Officials said it stayed tightly limited.

The waiver followed strain in India-US trade ties over Russian crude. Months earlier, President Donald Trump imposed a 25% penalty on Indian exports to the US. The move responded to India’s continued Russian oil buying despite warnings. That pressure was withdrawn after an interim trade agreement last month.

After the deal, US officials suggested India had stopped buying Russian oil. New Delhi never confirmed any halt. Reports later said flows slowed instead of ending. Reuters data showed imports fell to about 1.1 million barrels per day in January. That was the lowest since November 2022.

Reuters also reported fresh buying by a state refiner. Hindustan Petroleum Corp resumed Russian purchases after a three-month pause. The company secured two cargoes, according to two people cited by Reuters. Those cargoes were expected to arrive later this month. The waiver set the time window for such in-transit shipments.