In a big relief for India, United States Secretary of the Treasury Scott Bessent on Friday announced that the Treasury Department issued a temporary 30-day waiver to allow Indian refiners to purchase Russian oil. The move from the US comes as President Trump seeks to stabilise global energy markets amid rising tensions in the Middle East.
United States Secretary of the Treasury Scott Bessent said India is an essential partner of the United States, and we fully anticipate that New Delhi will ramp up purchases of US oil and added that this stop-gap measure will alleviate pressure caused by Iran’s attempt to take global energy hostage."
“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… India is an essential partner of the United States," United States Secretary of the Treasury Scott Bessent said in a post on X.
US expects India to increase purchases of American crude oil
Moreover, the move is aimed at easing pressure on global oil markets amid geopolitical tensions. “This short-term measure will not provide significant financial benefit to the Russian government as it only authorises transactions involving oil already stranded at sea,” Bessent said.
Bessent further added that the US expects India to increase purchases of American crude in the future. “We fully anticipate that New Delhi will ramp up purchases of US oil,” he added.
India's oil supply concerns
The waiver from the US on buying Russian oil comes as India remains vulnerable to disruptions in Middle Eastern energy supplies. The country holds crude reserves covering only about 25 days of demand and imports roughly 40% of its oil from the region, much of it shipped through the strategically vital Strait of Hormuz.
It significant to note that India became the largest buyer of Russian seaborne crude after Moscow’s 2022 invasion of Ukraine. However, the country started cutting back purchases earlier this year after pressure from Washington, which has sought to curb revenues supporting Russia’s war in Ukraine.
India oil refiners seek immediate Russian fuel delivery
In the meantime, the Indian Oil Corporation, Bharat Petroleum Corporation, Hindustan Petroleum Corporation and Mangalore Refinery and Petrochemicals Limited — are already in talks with traders to buy Russian crude for prompt delivery.
Reports suggest that the Indian state refiners have already purchased about 20 million barrels of Russian oil from traders.
However, for some oil refiners, the move marks a return to Russian supply. HPCL and MRPL last received Russian crude shipments in November, according to industry data cited by media reports.
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