US move on Russian oil waiver adds pressure as Iran war strains energy markets, India engaged in talks: Sources

New Delhi: The US announcement against allowing extension on waiver of Russian oil exports will further stress an already strained energy scenario, where continuation would have benefited countries worst affected by the Hormuz crisis and least able to withstand its effects, highly placed sources told ET.

The issue of extending a waiver for imports of sanctioned Russian oil figured during India's foreign secretary's recent visit to the USA. It has been learnt that India has been engaged with the USA on extending the waiver on Russian oil imports given the constraints on supply chains following the war in West Asia.

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There are reports that India may continue with the oil imports from Russia, upholding its sovereign rights. The US will not be renewing the waivers that allowed purchase of some Iranian and Russian oil without facing sanctions, Treasury Secretary Scott Bessent told reporters on Wednesday.

Meanwhile, in New Delhi, Russian Ambassador to India Denis Alipov has assured that Russia will step up energy exports to India including crude oil, LPG and LNG. Russia has significantly increased oil supplies to India and is ready to continue delivering energy resources in whatever volumes India requires, according to Alipov. India has been a reliable partner, which is a fact, with a consistent approach unlike the West.

India's crude oil imports from Russia surged in March, data from a European think tank showed. New Delhi's crude oil purchases from Moscow more-than-tripled in March to $5.8 billion from $1.54 billion in February, the Center for Research on Energy and Clean Air (CREA) said on Tuesday.

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India also imported coal worth $371 million and oil products amounting to $196 million from Russia in March, according to the report.New Delhi has emerged as a key market for Russian oil since March 2022. It bought almost 2 million barrels a day in 2024 and nearly $44 billion of crude from Moscow last year.