Indian oil firms can buy Russian oil already stranded at sea
People queue at a petrol station in Istanbul on March 6, 2026 as fears have grown of a possible inflationary wave as war in the Middle East sends energy prices shooting upwards. Many countries are watching for the impact on petrol prices du to turmoil in the Middle East after US and Israeli strikes on Iran, with the vital Strait of Hormuz effectively shut and several ships attacked. - Photo by Yasin AKGUL / AFP
Chennai, New Delhi: As a stop-gap measure to tide over Middle East supply disruption, the US has provided a 30-day waiver allowing India to buy Russian oil. But the US has permitted transactions just for the oil already stranded at sea. Indian oil refiners were reportedly scrambling for the oil tankers in the Bay of Bengal, Arabian Sea, near Singapore and Mediterranean Sea.
The US Treasury on March 5 issued General Licence No. 133, allowing the sale, delivery or offloading in India of Russian crude and petroleum products loaded on vessels on or before March 5, with the authorisation running until April 14.
“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,” US Treasury Secretary Scott Bessent posted on X.
“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. India is an essential partner of the US, 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,” he added.
The war in West Asia has driven global oil prices higher, making Russia a key supplier in the market. Notably, the Trump administration had imposed a 25 per cent penalty tariff on India in August last year for purchasing Russian oil, but withdrew it last month after stating that India had reduced such imports.
Russia was once a negligible oil supplier to India. However, this changed after the Ukraine war began four years ago, when Europe — Russia’s traditional market — sharply cut its imports following deteriorating ties with Moscow. India, which had long depended largely on West Asian oil, then began importing significant volumes of discounted Russian crude, a shift that had earlier been encouraged by the Biden administration in Washington.
Over the past year, however, the Trump administration hardened its position as the US viewed Russia as unwilling to halt hostilities in Ukraine.
( Source : Deccan Chronicle )
Next Story