Energy pressures force US policy shift on India’s Russian oil imports

2026-03-06 - 20:16

The United States has temporarily allowed India to resume purchasing Russian oil, less than a month after New Delhi agreed to scale back such imports under a trade understanding with Washington. The policy shift comes as global energy markets face renewed pressure following disruptions linked to the Middle East conflict and restrictions affecting oil shipments through the strategically vital Strait of Hormuz. The administration of Donald Trump announced a 30-day waiver permitting Indian refiners to buy Russian crude already loaded on vessels before March 5. The measure was confirmed by Scott Bessent, the US Treasury Secretary, who described India as a key partner of the United States, dw.com reports. Bessent said the temporary step aims to ease pressure on global oil markets while limiting financial gains for Russia. According to the US Treasury, the waiver only covers oil cargoes already at sea and does not allow new long-term purchase agreements. The decision follows a recent trade deal between Washington and India, announced during talks between Trump and Indian Prime Minister Narendra Modi. As part of that agreement, India had pledged to reduce its reliance on Russian crude. However, escalating tensions in the Middle East and disruptions to oil production have pushed global prices higher, forcing policymakers to seek short-term solutions to stabilize supply. India, the world’s third-largest crude importer, relies heavily on overseas shipments to meet domestic demand. Nearly half of its crude imports pass through the Strait of Hormuz, making it particularly vulnerable to disruptions in Gulf shipping routes. Energy analysts say the waiver provides immediate relief for Indian refiners that had been scrambling to secure alternative supplies from the Middle East, including from Saudi Arabia, Kuwait, Qatar and the United Arab Emirates. Experts also note that Russian oil had become attractive to Indian buyers after the 2022 invasion of Ukraine, as sanctions forced Moscow to sell crude at steep discounts on global markets. Despite the waiver, analysts believe the move will have only limited long-term benefits for Russia. Sanctions imposed by Washington on major Russian energy companies, including Rosneft and Lukoil, continue to weigh on the country’s energy revenues. Economists say the temporary waiver may lower global oil prices slightly by releasing additional supply into the market. However, its broader impact will depend on how long the current geopolitical tensions last and whether the United States extends the exemption. For now, the decision underscores how global energy markets remain highly sensitive to geopolitical conflicts and supply disruptions, forcing governments to balance sanctions policies with the need to maintain stable oil flows.