The United States has issued a temporary 30-day waiver permitting Indian refiners to import Russian crude oil already in transit, as the administration seeks to maintain stability in global energy markets amid escalating tensions linked to the Iranian war.
The authorisation was issued by the US Department of the Treasury’s Office of Foreign Assets Control (OFAC) and signed on March 5. The licence allows transactions necessary for the sale, delivery or offloading of Russian crude oil and petroleum products that were loaded onto vessels before March 5. These shipments must be delivered to ports in India and purchased by companies incorporated under Indian law.
US officials said the waiver was designed as a limited measure to allow shipments already stranded at sea to reach their destination without breaching sanctions regulations.
Treasury Secretary Scott Bassent said the administration’s energy policy had resulted in record oil and gas production levels in the United States. He said the temporary measure would help ensure continued oil supply in global markets during the ongoing geopolitical tensions.
According to Bassent, the waiver is deliberately short-term and is not expected to generate significant financial benefit for Russia because it only covers cargoes that had already been loaded before early March. He also described India as an essential partner of the United States and said Washington expects New Delhi to increase purchases of American crude in the future.
Officials stated that the licence authorises a range of maritime and logistical services required to complete the deliveries. These include docking and anchoring operations, crew safety procedures, emergency vessel repairs and other routine maritime services.
Operational activities such as vessel management, crewing, bunkering, piloting, insurance coverage and related maritime support services are also permitted under the temporary authorisation. The Treasury Department clarified that these provisions are limited strictly to facilitating the completion of shipments that were already in transit.
The waiver remains valid until April 4, after which the permitted transactions will cease unless further authorisation is issued.
US authorities emphasised that the measure does not represent a broader relaxation of sanctions imposed on Russia. The licence does not authorise additional financial or commercial transactions restricted under existing US sanctions laws.
The authorisation also explicitly excludes any dealings involving Iran or Iranian-origin goods and services, which remain prohibited under current regulations.
The United States and several Western allies imposed extensive sanctions on Russia following its invasion of Ukraine in 2022. Those measures targeted key sectors of the Russian economy, including finance, defence and energy, and placed restrictions on global transactions involving Russian oil.
Officials said the latest waiver reflects an effort to manage disruptions in the global oil supply chain while maintaining the overall sanctions framework.
India has continued to import Russian crude since the imposition of Western sanctions, with Indian refiners purchasing discounted oil shipments routed through global maritime networks. The current waiver addresses cargoes that were already loaded and moving toward Indian ports before the latest regulatory restrictions took effect.
The decision comes at a time when geopolitical tensions in the Middle East are adding pressure to global energy markets. By allowing the completion of shipments already underway, US authorities said the move aims to prevent sudden supply disruptions while maintaining compliance with sanctions policy.
