Indian refiners have begun purchasing Russian crude cargoes stranded at sea after the United States issued a temporary 30-day waiver permitting India to buy the oil, as the country moves to safeguard supplies amid disruptions in the Middle East.
Sources said refiners stepped up purchases of the floating Russian barrels after the US Treasury Department granted a short-term licence allowing India to buy cargoes already loaded on tankers. More than 15 million barrels of Russian crude are currently floating on ships near Indian waters.
India, once among the largest buyers of Russian oil following Western sanctions on Moscow in February 2022, had recently reduced imports under pressure from Washington to curb purchases aimed at limiting revenue for Russia’s war effort in Ukraine.
As a result, India’s imports of Russian crude fell to around 1.04 million barrels per day in February, the lowest level since November 2022. Several shipments remained stranded at sea after the reduction in purchases, sources said.
The situation has shifted again as tensions in West Asia disrupt supplies. The escalating conflict has effectively blocked shipments through the Strait of Hormuz, a critical route through which India receives around 40–50 per cent of its crude imports.
Faced with the risk of supply disruptions, Indian refiners are now balancing purchases from Russian cargoes at sea and other sources to maintain steady domestic fuel supplies.
US Treasury Secretary Scott Bessent said the waiver was intended to prevent disruptions in global oil markets.
“President Trump's energy agenda has resulted in oil and gas production reaching the highest levels ever recorded,” Bessent said. “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.”
Calling it a stopgap measure, he said Washington expects India to eventually increase purchases of American oil.
“India is an essential partner of the United States, and we fully anticipate that New Delhi will ramp up purchases of US oil. This stop-gap measure will alleviate pressure caused by Iran's attempt to take global energy hostage,” he said in a post on X.
Analysts said the waiver could allow Indian refiners to temporarily boost Russian imports.
“With nearly 50 per cent of India's crude imports transiting the Strait of Hormuz, the country remains highly exposed to potential supply disruptions,” said Sumit Ritolia, an analyst at data intelligence firm Kpler.
He noted that the waiver could allow refiners to increase Russian imports to between 1.6 and 2 million barrels per day in the near term, though competition from Chinese buyers may limit the extent of India’s gains.
India currently holds crude inventories sufficient for about 25 days of demand and is seeking to build stocks as uncertainty over Middle East supplies persists.
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