South Africa tour of India 2019
Indian Refiners Turn to Russian Oil After US Grants Temporary Waiver
Indian oil refiners have resumed purchases of Russian crude oil that had been stranded at sea after the United States Department of the Treasury granted a temporary 30-day waiver allowing such transactions.
The decision comes at a time when India is seeking to secure energy supplies amid growing disruptions in the Middle East caused by regional conflict. According to sources, more than 15 million barrels of Russian crude are currently floating on tankers near Indian waters.
India had previously reduced imports from Russia following pressure from the United States, which urged countries to limit financial support to Moscow during the ongoing Russia-Ukraine War.
As a result, India’s imports of Russian crude dropped to about 1.04 million barrels per day in February — the lowest level since November 2022. Several cargoes remained stranded on tankers after the reduction in purchases.
However, escalating tensions in West Asia have disrupted shipping routes through the Strait of Hormuz, a critical corridor through which nearly half of India’s crude imports pass. This has prompted Indian refiners to diversify supply sources and secure additional oil reserves.
US Treasury Secretary Scott Bessent described the waiver as a temporary measure aimed at maintaining stability in global energy markets. He clarified that the licence applies only to Russian oil already stranded at sea and is unlikely to provide significant financial benefits to the Russian government.
Energy analysts believe the waiver could allow India to increase Russian crude imports to between 1.6 and 2 million barrels per day in the near term. However, competition from Chinese buyers may limit the scale of these purchases.
Experts say Indian refiners are likely to prioritise domestic fuel security before expanding exports of refined petroleum products.
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