E-Paper
US extends sanctions waiver on Russian seaborne oil: What it means for India
US sanctions restrict Russian oil trade but a temporary waiver allows crude already in transit to be delivered to avoid global supply disruptions.
The United States has extended a temporary waiver that allows Russian oil already in ships to be delivered even with sanctions in place. This gives more time for these shipments to reach buyers, including India, while global oil markets remain uncertain amid the US war on Iran. The extension pushes the deadline for these transactions to June 17.
The decision comes at a time when India’s imports of Russian crude remain near record highs and global oil markets are still sensitive to supply risks.
What the US said
The waiver is limited to oil already at sea and does not entirely lift sanctions on Russian energy exports, the US treasury department said.
“This extension will provide additional flexibility, and we will work with these nations to provide specific licences as needed,” US treasury secretary Scott Bessent wrote on X. “This general licence will help stabilise the physical crude market and ensure oil reaches the most energy-vulnerable countries.”
What this means for India
- No immediate disruption in supply - The extension ensures that Russian oil already in transit can still be delivered. This reduces the risk of short-term supply shocks.
- Continued access to discounted crude - Russia remains a key source of discounted oil for India. As long as the waiver mechanism continues, refiners can maintain current trade flows with fewer legal risks.
- Stable but uncertain environment - The repeated short extensions show this is not a fixed system. Companies find it difficult to plan long-term deals and manage shipping in advance.
- Geopolitical balance - India is trying to ensure it has enough oil for its needs while also following Western sanctions rules. The waiver helps India keep buying Russian oil without directly clashing with those sanctions.
India’s rising dependence on Russian oil
India has become one of the biggest buyers of discounted Russian crude since Western sanctions on Russia began. New Delhi imported a record 2.25 million barrels per day (bpd) from Moscow in March, data from shipping analytics firm Kpler showed. This was nearly double February levels. Russian oil now makes up about 50% of India’s total crude imports.
Arrivals remained high in April at around 2.1 million barrels per day, Reuters reported. The mid-April dip was linked to supply disruptions after Ukrainian drone strikes on Russian export facilities in late March.
India’s response
India has consistently maintained that its crude purchasing decisions are based on price and supply needs. Refiners have continued sourcing Russian crude through trading channels that comply with sanctions frameworks.
Earlier purchases from Russian firms such as Rosneft and Lukoil had slowed after tighter sanctions, but flows have continued through alternative arrangements.
Sujata Sharma, Joint Secretary in the Ministry of Petroleum and Natural Gas, said Monday that purchases were not dependent on the waiver: “Regarding the American waiver on Russia, I would like to emphasise that we purchased from Russia earlier, before the waiver also, during the waiver also, and now also,” as per Reuters.
New Delhi has also maintained that its purchasing decisions are independent of Western regulatory timelines. Indian refiners reportedly already secured most of their May delivery volumes ahead of the latest announcement. The country paid premiums of $7 to $9 per barrel relative to dated Brent, matching April pricing structures.
Before the waiver, Indian refiners had scaled back purchases from sanctioned Russian energy firms like Rosneft and Lukoil. The exemption allowed Indian buyers to legally secure supplies using non-sanctioned enterprises, vessels, and expanded marine insurance cover.
India's directorate general of shipping recently increased the number of eligible Russian insurers from eight to 11 to keep trade moving smoothly.
(With inputs from Reuters)
