As global energy markets remain tensed due to a crunch caused by the ongoing tensions in the Middle East, the United States (US) has decided to make a U-turn and renewed a sanction waiver, allowing countries to procure Russian oil and petroleum products at sea, as per a report by the Associated Press (AP). The development comes two days after the Trump administration said it has no plans to do so.
The Treasury Department of the US has posted the license on its website on late Friday night, which allowed countries to buy Russian oil loaded onto vessels till May 16. This move will provide a relief to many countries, including India, that have been dealing to tackle the soaring crude rates ever since the US-Israel-Iran war started on February 28.
On April 15, US Treasury Secretary Scott Bessent had said that the Trump administration won't renew the temporary sanction waiver. The waiver, of which even India was a beneficiary, had expired on April 11. The US, which has often criticised countries that buy Russian oil which indirectly fuel the war in Ukraine, had stated this temporary measure wouldn't provide significant financial benefit to the Russians.
"We will not be renewing the general license on Russian oil and we will not be renewing the general license on Iranian oil. That was oil that was on the water prior to March 11. So all that has been used," Bessent told reporters at a press conference earlier this week.
A likely relief for India
The move will provide a relief to India, which is one of the biggest buyers of Russian crude. According to a report by Centre for Research on Energy and Clean Air (CREA), which is a European think tank, India started procuring more Russian oil again in March after a dip in February. It stated that India's crude oil purchases from Russia more than tripled to 5.3 billion euros in March.
This came after the US issued the sanction waiver, with Energy Secretary saying that Washington had asked New Delhi to procure Russian oil to "tamp down" fears of supply shortages and price spikes due to the war with Iran.
"India was the second-highest buyer of Russian fossil fuels in March 2026, importing a total of EUR 5.8 billion of Russian hydrocarbons. Crude oil products constituted 91 per cent of India's purchases, totalling EUR 5.3 billion," the CREA reported stated.
