US extends sanctions waiver that allowed India, other countries to buy Russian oil
The Treasury Department said that oil that has been loaded onto ships as of April 17 can be purchased until May 16.
United States President Donald Trump’s administration on Friday issued a waiver allowing countries, including India, to purchase sanctioned Russian oil and petroleum products, that were loaded onto ships as of Friday. The US Treasury Department said that the waiver allows these purchases till May 16. An earlier 30-day waiver had expired on April 11.
The move is aimed at easing global energy prices, which have increased amid the conflict in West Asia.
The extension came two days after Treasury Secretary Scott Bessent said that Washington would not renew the waiver permitting countries to buy Russian oil without facing US sanctions.
On Wednesday, Bessent said that the waivers had pertained to oil “on water prior to March 11”. “So all that has been used,” he had told reporters.
On March 5, the US had granted Indian refiners a 30-day waiver allowing them to buy Russian oil stranded at sea amid the conflict in West Asia. The US treasury secretary had at the time described the move as a short-term measure aimed at keeping global oil supplies, and maintained that it would not “provide significant financial benefit” to Russia.
The relaxation allowed India to secure additional Russian oil supplies amid global disruptions, with refiners reportedly ordering around 30 million barrels during the period.
India is a net importer of oil and gas, with around 80% to 85% of its energy requirements met through imports.
A week after granting the waiver to India, Washington extended a similar 30-day licence to other countries for Russian crude loaded before March 11.
Global oil prices have spiked due to the conflict in West Asia, with Iran having blocked the strategic Strait of Hormuz for most commercial shipping. The narrow waterbody connects the Gulf to the Arabian Sea. About 20% of the global petroleum supply passes through the maritime chokepoint.
The developments came against the backdrop of earlier tensions between Washington and New Delhi over India’s continued purchases of Russian crude.
The Trump administration had in August imposed a punitive levy on India for buying oil from Russia amid the Ukraine war. This had taken the combined US tariff rate to 50%.
On February 7, Trump issued an executive order to remove the additional 25% punitive tariff on imports from India over New Delhi’s purchase of Russian oil. This brought the effective US tariff rate on Indian imports to 18% after the interim trade deal was agreed to.
