US Provides Temporary Oil Waiver to India Amid Global Energy Crisis

In a significant development, the US treasury department has issued a 30-day waiver to enable Indian refiners to purchase Russian oil. According to treasury secretary Scott Bessent, this 'stopgap measure' is designed to alleviate pressure caused by Iran's attempt to take global energy hostage. The waiver will allow Indian refiners to buy millions of barrels of prompt Russian crude oil cargoes, which are currently stranded at sea.

Indian refiners, including Indian Oil, Bharat Petroleum, Hindustan Petroleum, and Mangalore Refinery and Petrochemicals, have started talking to traders for prompt delivery of Russian cargoes. One of the sources revealed that Indian state refiners have bought about 20 million barrels of Russian oil from traders so far. The waiver is seen as a temporary solution to keep oil flowing into the global market until India can eventually buy more US oil.

This move comes after months of Washington pressuring New Delhi to avoid buying Russian barrels in an effort to reduce money flowing to Moscow's war effort in Ukraine. Despite being vulnerable to energy supply shocks, India has managed to secure an interim trade deal with the US by cutting Russian oil purchases. The waiver is seen as a crucial step in ensuring India's energy security during the ongoing Middle East conflict.

The US treasury department's announcement came after India approached Donald Trump's administration seeking approval to buy Russian crude imports due to the Iran conflict. The waiver is set to expire in 30 days, after which India is expected to resume buying US oil.

In a statement, treasury secretary Scott Bessent said, '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 emphasized that the US expects India to eventually buy more US oil.