Reversing its position, US allows India to buy Russian oil
After months of pressuring India to stop buying Russian oil, the United States has granted New Delhi a temporary waiver allowing it to purchase fuel from Moscow, as the war in the Middle East limits global oil supplies.
"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," U.S. Treasury Secretary Scott Bessent said in a social media post on March 5.
"This deliberately short-term measure will not provide significant financial benefit to the Russian government as it only authorizes transactions involving oil already stranded at sea," he added.
"India is an essential partner of the United States," Bessent wrote, noting that Washington expects New Delhi to increase purchases of U.S. oil. "This stop-gap measure will alleviate pressure caused by Iran's attempt to take global energy hostage."
Indian refiners have begun buying millions of barrels of prompt Russian crude cargoes as the country navigates tightening oil supplies triggered by the U.S.-Israeli war in Iran, according to six sources familiar with the matter who spoke to Reuters.
Bessent's announcement follows months of pressure from Washington urging New Delhi to reduce purchases of Russian oil in an effort to limit a key source of revenue for Moscow's war effort in Ukraine.
India became one of the largest buyers of Russian oil after Moscow's 2022 invasion of Ukraine, though refiners began scaling back purchases amid growing pressure and tariff threats from the United States.
