Kamal Ghorui
The United States has decided not to extend the temporary waiver that allowed the sale of Russian and Iranian oil already at sea. The announcement comes as US treasury secretary Scott Bessent on Wednesday said, “We will not be renewing the general license on Russian oil,” adding, “That was oil that was on the water prior to March 11, so all that has been used.”This has raised a major question: how will countries that were buying these supplies now reshape their strategies, as energy supplies across the world continue to be choked by the ongoing Middle East war?A similar decision was imposed on Iranian crude, signalling a return to tighter enforcement under the US “maximum pressure” policy. “We have told countries that if you are buying Iranian oil, that if Iranian money is sitting in your banks, we are now willing to apply secondary sanctions,” Bessent told reporters at the White House.The waivers were introduced back in March, as a short-term measure to support war-strained oil pipelines, after disruptions from the Iran war sent ripples across the world. The waiver granted a 30-day licence for Russian crude loaded before March 12, which expired on April 11. Another waiver covering Iranian shipments loaded before March 20 is due to lapse on April 19, with no extension planned.
Sanction waiver in March – what it meant for India
For India, the temporary relaxations provided a narrow window to secure supplies, as the country is heavily dependent on imports to fuel energy needs. Bessent had earlier explained, “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. This deliberately short-term measure will not provide significant financial benefit to the Russian government as it only authorizes transactions involving oil already stranded at sea.” During this period, Indian refiners placed orders for roughly 60 million barrels of Russian crude. This came after earlier reductions in purchases from companies such as Rosneft and Lukoil due to sanctions-related constraints.India also received Iranian crude during the window, marking its first such imports in about seven years. The country rushed in to bring supplies before the deadline ended, bringing in almost 4 million barrels.According to a Bloomberg report citing vessel-tracking data from Kpler and Vortexa, the tanker Jaya unloaded Iranian oil at Paradip on the eastern coast, while another vessel, Felicity, reached Sikka, on the western coast. Both tankers were under US sanctions.Paradip handles shipments for Indian Oil Corporation, while Sikka is used by Reliance Industries and Bharat Petroleum Corporation through a single-point mooring facility.Another vessel, Derya, loaded with crude from Kharg Island in late March, remains stationed off India’s western coast. It may have missed the waiver deadline and is currently awaiting further instructions, with no confirmed port of discharge.Follow live updates here
The key question — What return of sanctions means for India
The waivers offered temporary relief to bring in oil supplies, as the escalation drained global energy pipelines. For India, they helped manage supply gaps during the period of uncertainty in shipping routes and pricing.India’s crude imports from Russia surged in March, with purchases at nearly $6.2 billion, compared with $1.6 billion recorded during the previous month, amid the military conflict in the Middle East and closure of the Strait of Hormuz. Furthermore, India’s total crude imports fell 4% in March, but those from Russia rose four times.With both waivers now ending, the country will now have to reroute its crude strategy as it continues to deal with disruptions in global oil flows. It is also looking to become self-reliant in the energy sector, expanding capacity in green energy, nuclear power and thermal generation to lessen dependence on imported oil and gas.Meanwhile, the country’s oil requirements are fully secured for upcoming months. Crude supplies have been in focus ever since the Middle East got embroiled in a war. Back on February 28, US and Israel launched joint strikes on Iran. Since the attack, Tehran has effectively restricted traffic through the Strait of Hormuz, straining around 20% of the world’s energy supply and forcing nations to adopt measures to reduce fuel consumption.
