NEW YORK/WASHINGTON, Mar 7: The United States has granted “permission” to India to purchase Russian oil already on ships at sea, aiming to ease global oil supplies amid the ongoing West Asia conflict.
“The world is very well supplied in oil. Yesterday, the Treasury Department agreed to let our allies in India start buying Russian oil that was already on the water,” US Treasury Secretary Scott Bessent said in an interview with Fox Business on Friday.
“The Indians had been cooperative. We had asked them to stop buying sanctioned Russian oil last fall, and they complied, substituting it with US oil. But to ease the temporary gap in global oil supply, we have now allowed them to accept the Russian oil. We may unsanction additional Russian oil if needed,” he added.
Bessent noted that hundreds of millions of barrels of sanctioned Russian crude remain afloat. “By unsanctioning them, Treasury can create supply. We will continue announcing measures to stabilize the market during this conflict,” he said.
Several other officials from the Trump administration confirmed that India has now been allowed to purchase Russian oil, months after punitive 25% tariffs were imposed on Delhi for its previous purchases from Moscow.
Energy Secretary Chris Wright said on X that the US is allowing India to take Russian oil already on ships around Southern Asia, refine it, and quickly move it into the market to maintain steady supplies and ease pressure amid the US-Israel-Iran tensions.
“We have implemented short-term measures to keep oil prices stable. India can take the oil on ships, refine it, and release it into the market, which helps supply flow and reduces pressure on other refineries,” Wright said.
In an interview with ABC News Live, Wright added that while long-term oil supplies are abundant, short-term market adjustments are necessary. “As oil prices rise due to constraints near the Strait of Hormuz, we’ve asked India to buy stranded Russian oil, bring it to their refineries, and relieve pressure on global markets,” he said.
Wright emphasized that these are temporary measures and do not represent a change in US policy toward Russia. “This is a brief adjustment to help stabilize oil prices,” he said.
On Thursday, the US had announced a 30-day waiver allowing Indian refiners to purchase Russian oil. Bessent described the measure as “deliberately short-term” and noted it would not provide significant financial benefit to the Russian government, as it only applies to oil already stranded at sea.
“India is a key partner of the United States, and we fully expect New Delhi to increase purchases of US oil. This stop-gap measure helps offset pressures caused by Iran’s attempts to disrupt global energy,” Bessent said.
Previously, punitive 25% tariffs had been imposed on India for buying Russian oil, with the US asserting that Delhi’s purchases indirectly fueled Russia’s war against Ukraine. Last month, the US and India reached a framework for an interim trade agreement, and Trump removed the tariffs after New Delhi committed to halt direct or indirect energy imports from Moscow and increase purchases of American energy products.
According to the Treasury Department’s statement, all transactions necessary for the delivery or offloading of Russian crude loaded on vessels before 12:01 a.m. EST on March 5, 2026, are authorized through 12:01 a.m. EDT on April 4, 2026, provided the delivery occurs at an Indian port and the purchaser is an Indian entity.
The license does not authorize any other prohibited transactions under existing Executive orders, including those involving Iran or Iranian-origin goods or services. (Agencies)
