US Allows India to Purchase Russian Oil Already at Sea to Ease Global Supply Pressure
The United States has allowed India to purchase Russian oil that is already loaded on vessels in waterways, as part of a temporary measure aimed at easing global supply pressures during the ongoing conflict in West Asia.US Treasury Secretary Scott Bessent confirmed the decision in an interview with Fox Business on Friday, stating that the authorization was intended to ensure adequate oil supply in global markets.
Temporary Relief Measure for Global Oil Supply
Bessent said the US Treasury Department has authorized Indian refiners to buy Russian crude that is already on ships."The world has ample oil supplies. Yesterday, the Treasury Department authorized our allies in India to begin buying Russian oil that was already on the water," Bessent said.
He noted that Indian companies had earlier complied with US requests to stop purchasing sanctioned Russian oil.
According to Bessent, Indian refiners had halted such purchases in the fall and were planning to replace them with imports of US crude. However, to address short-term supply constraints, Washington has temporarily permitted India to accept Russian oil cargoes that are already in transit.
Large Volumes of Oil Stranded at Sea
Bessent said significant quantities of crude remain stranded at sea due to sanctions.He stated that hundreds of millions of barrels of sanctioned oil are currently on vessels, and easing restrictions on these cargoes could quickly add supply to the market.
The Treasury Department is examining additional steps to ease pressure on global oil markets during the ongoing conflict, he said.
US Officials Confirm Short Term Policy Adjustment
Other officials from the Trump administration also confirmed that India has been allowed to purchase the Russian oil already on ships.US Energy Secretary Chris Wright said the move is designed to ensure that existing cargoes quickly enter the market.
In a post on X, Wright said the US is allowing India to take Russian oil already on ships in Southern Asia, refine it, and release the supplies into the market to maintain steady availability.
He described the measure as a practical way to maintain supply continuity and reduce market pressure.
Oil Supply Challenges Linked to Strait of Hormuz
In an interview with ABC News Live, Wright said long term oil supply remains abundant, but short term disruptions require immediate solutions.He noted that some supply constraints are linked to tensions around the Strait of Hormuz. Allowing floating Russian oil storage in Southern Asia to be processed by Indian refineries could help ease these pressures.
Wright said the US had encouraged India to purchase the oil and bring it into its refineries, which would quickly move the stored barrels into the market and reduce competition for other crude supplies.
Limited Waiver with No Long Term Policy Change
The US Treasury Department had earlier announced a temporary 30 day waiver allowing Indian refiners to purchase Russian oil already loaded on vessels.Bessent said the measure is deliberately short term and will not significantly benefit the Russian government because it applies only to cargoes already stranded at sea.
He also emphasized that India remains an important partner for the United States and that Washington expects New Delhi to increase purchases of American oil in the future.
Details of the Treasury Authorization
A statement from the US Department of Treasury titled "Authorizing the Delivery and Sale of Crude Oil and Petroleum Products of Russian Federation Origin Loaded on Vessels as of March 5, 2026 to India" outlines the scope of the authorization.The general license permits transactions necessary for the sale, delivery, or offloading of Russian crude oil or petroleum products loaded on vessels on or before March 5, 2026.
These transactions are authorized until April 4, 2026, provided that the cargo is delivered to a port in India and purchased by an entity organized under Indian law.
However, the authorization does not permit any other transactions restricted under existing executive orders, including activities involving Iran or Iranian origin goods and services that remain prohibited under US sanctions regulations.
Background: Tariffs and Trade Developments
Earlier, President Donald Trump had imposed 25 percent tariffs on India over its purchases of Russian oil, arguing that such imports were helping fund Russia’s war against Ukraine.Last month, however, the US and India announced a framework for an Interim Agreement on trade. Following this development, Trump issued an Executive Order removing the tariffs after India committed to stop directly or indirectly importing energy from Moscow and to increase purchases of American energy products.
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