Indian refiners study US green light for Russian oil as Middle East tensions rise

Indian refiners are assessing the legal implications of a U.S. order that temporarily allows imports of Russian oil from sanctioned entities, Reuters reported citing government sources on Friday.

The waiver, issued Thursday, permits India to purchase Russian crude currently stranded at sea. It comes after months of Washington urging New Delhi to avoid Russian barrels, part of a broader effort to limit funds flowing to Moscow’s war campaign in Ukraine.

Also Read: War in West Asia hands India an unexpected breather


Just days ago, India seemed close to exhausting its options on Russian oil, one of the most sensitive questions in its energy policy. As negotiations over an interim trade framework with Washington progressed, Indian refiners had been steadily cutting Russian imports. Reports by Reuters suggested a full halt could be imminent.

The outbreak of conflict in West Asia, triggered by US and Israeli strikes on Iran and the killing of Supreme Leader Ayatollah Ali Khamenei, has drastically altered the geopolitical and energy scenario.

On Friday, Washington rovided a short-term solution. US Treasury Secretary Scott Bessent announced a 30-day waiver allowing Indian refiners to buy Russian crude cargoes stranded at sea, aiming to stabilize global oil markets amid the unfolding crisis.

Also Read: India says it has enough oil in the tank despite Hormuz tensions

“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,” Bessent said in a statement posted on X.

“This deliberately short-term measure will not provide significant financial benefit to the Russian government as it only authorizes transactions involving oil already stranded at sea,” he added.