The U.S. Treasury Department issued a temporary 30-day waiver on Thursday, March 5, allowing Indian refiners to purchase Russian crude oil and petroleum products already loaded on vessels at sea. The Office of Foreign Assets Control authorized transactions under Russia-related General License 133 for cargoes loaded before 12:01 a.m. EST that day, destined for delivery to Indian entities, with the measure expiring at 12:01 a.m. EDT on April 4.

Treasury Secretary Scott Bessent announced the waiver on X, stating, “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.” He emphasized that the short-term step targets only stranded cargoes and "will not provide significant financial benefit to the Russian government." Bessent added that the move alleviates pressure from "Iran’s attempt to take global energy hostage" and anticipates India ramping up U.S. oil purchases.

The decision comes amid escalating conflict between Iran, the U.S., and Israel, which has slashed maritime traffic through the Strait of Hormuz by 90 percent, a chokepoint for 40 percent of India's crude imports. India holds national crude stocks for about 25 days of demand and processes 5.6 million barrels per day, with refiners securing around 20 million barrels of Russian oil for March and early April deliveries. Nearly 9.5 million barrels of Russian oil sit near Indian waters, poised for quick delivery.

India ramped up discounted Russian crude purchases after Russia's 2022 invasion of Ukraine, at one point accounting for about one-third of its seaborne imports and 25 percent of Russia's seaborne crude exports. The Trump administration had imposed pressure through tariffs on Indian goods and sanctions on Russian producers, leading to a drop in imports to 1.1 million barrels per day in January, the lowest since late 2022. Tariffs eased last month under a trade deal, and recent imports rebounded to roughly 30 percent of total crude.

Indian officials report sufficient short-term stockpiles, while the waiver provides a buffer as refiners like Indian Oil Corporation and Reliance Industries seek prompt supplies, even at premiums of $4 to $5 per barrel over Brent. Brent crude has climbed above $90 per barrel amid the disruptions, contributing to market volatility.

The exemption excludes new shipments, Iran-related transactions beyond essentials, and focuses on operational services like bunkering and insurance to ensure safe deliveries. Analysts note it stabilizes refining operations without long-term boosts to Moscow, as discounts narrow amid tight supply.