US extends Russian oil waiver by 30-days for 'vulnerable nations'

Earlier today, the Ministry of Petroleum, announced that India will continue importing Russian oil regardless of American waivers, after the US waiver expired over the weekend. 

In a significant development for global energy markets, the United States Treasury Department has issued a fresh 30-day waiver allowing the most energy-vulnerable nations to access Russian crude oil currently stranded at sea. The development comes after an earlier waiver issued by Washington expired over the weekend.  

US Treasure Secretary Scott Bessent in an X statement, said, “@USTreasury is issuing a temporary 30-day general license to provide the most vulnerable nations with the ability to temporarily access Russian oil currently stranded at sea.”

“This extension will provide additional flexibility, and we will work with these nations to provide specific licenses as needed. This general license will help stabilize the physical crude market and ensure oil reaches the most energy-vulnerable countries. It will also help reroute existing supply to countries most in need by reducing China’s ability to stockpile discounted oil, “ he added.

Also Read: India to continue Russian oil imports despite US sanctions waiver

India to continue buying Russian oil regardless of American waivers

For India, which has ramped up Russian crude imports since 2022 to meet its energy needs at competitive prices, this waiver comes as a positive development.

Earlier today, the government of India, the Ministry of Petroleum, announced that India will continue importing Russian oil regardless of American waivers.

Joint Secretary (Marketing & Oil Refinery), Ministry of Petroleum & Natural Gas, Sujata Sharma, in a press briefing, said, “ India will continue buying Russian oil based on commercial viability, regardless of any US sanctions waiver. The official stressed that the country has secured sufficient crude supplies and assured that India’s energy imports will remain unaffected, with no risk of shortages.”

Indian refiners have been major beneficiaries of such temporary sanctions relief, especially amid disruptions in the Strait of Hormuz due to US-Iran tensions that have pushed global oil prices higher.

Also Read: ‘Bullied for months, now begging’: Iran slams US over Russian oil waiver to India

The Russian oil currently accounts for nearly 40-45% of India’s total crude imports in recent months. The discounted barrels have helped India save on its energy import bill, supporting the government’s efforts to control inflation and petrol-diesel prices ahead of the monsoon season.

New Delhi  has been in active engagement with Washington to ensure continued access, especially as alternative supplies from the Middle East face logistical challenges.

This latest 30-day window is seen as a pragmatic step by the US to ease global supply tightness.

The development is likely to ease concerns in India’s oil marketing companies and provide breathing room for the economy, which remains heavily dependent on imported crude.

Though long-term energy security requires accelerated domestic production and diversification of sources.