The United States decided to extend sanctions waivers on Russian oil, providing temporary relief to countries buying crude from Moscow as the world grapples with tight energy supplies. The US Treasury Department issued a new license on Friday allowing the purchase of Russian oil and petroleum products that had already been loaded onto ships that day. The arrangement will be in place until 12:01 a.m. (0401 GMT) on May 16, replacing a previous relaxation that expired on April 11. The move comes despite recent indications from Treasury Secretary Scott Besant that such relief would not continue. “We will not be renewing the general license on Russian oil,” he said, “that was oil that was in the water before March 11, so that’s all been used.” Now, as the sanction waivers remain in effect, countries will be able to purchase crude from Russia for a longer period as supply concerns threaten energy security.
What does the approval waiver on Russian crude mean for India?
For India, which depends on imports for about 90% of its crude oil needs, the relaxation is of immediate importance. In recent weeks, Indian refiners have increased their intake of Russian crude as supplies in the Middle East come under pressure. Earlier, buying had slowed following US sanctions targeting major Russian producers such as Rosneft and Lukoil, but a change in the supply landscape has brought Russian oil back into focus.“India is gobbling up all the Russian crude it can get its hands on,” Vandana Hari, founder of Singapore-based consultancy Vanda Insights, previously told Bloomberg. “I expect India to continue to consume the maximum amount of Russia as long as its flows through the Persian Gulf remain disrupted.” He added.At the same time, India continues to maintain that it has not refused to buy Russian crude. Government officials have also said that India’s approach remains guided by practical considerations. Sujata Sharma, joint secretary in the oil ministry, had earlier said, “Our priority is to source the energy required to meet our domestic demand.” The decision, he said, “is driven by the technical commercial feasibility of the crude oil and the commercial understanding of it by our refiners.”Import trends highlight this change. India’s purchases of Russian crude reached 1.98 million barrels per day in March, the highest level since June 2023, according to Kpler data. Although imports have declined to 1.57 million barrels per day so far in April, the decline is linked to maintenance work at Nayara Energy’s 400,000 barrel per day refinery. Industry officials expect volumes to pick up again from next month.The initial relaxation introduced in March had already enabled significant inflows, with India securing about 60 million barrels for delivery this month. Also, Russian crude oil accumulation at sea, which stood at about 155 million barrels in early January, has started to decline as Indian buyers are increasing purchases. Current volume is estimated at around 100 million barrels.For India, this expansion provides a narrow but important window to ensure supply, even as broader uncertainties around the Middle East and global energy flows continue to shape its import strategy. The extension comes as the Middle East conflict has dragged on for nearly seven weeks. The war began on February 28, when the US and Israel launched joint strikes on Iran, after which the country tightened its grip on the Strait of Hormuz, disrupting global oil supplies.
