Kamal Ghorui
The United States decided to extend the sanctions waiver on Russian oil, offering temporary relief to countries purchasing crude from Moscow as the world grapples with tight energy supplies. The US treasury department on Friday issued a fresh licence allowing the purchase of Russian oil and petroleum products that had already been loaded onto ships as of that day. The arrangement will remain in place until 12:01 am (0401 GMT) on May 16, replacing an earlier waiver that lapsed on April 11. The move comes despite treasury secretary Scott Bessent’s recent signal that such relief would not continue. “We will not be renewing the general license on Russian oil,” he had said, adding, “That was oil that was on the water prior to March 11, so all that has been used.” Now, as the sanction waiver remains in effect, countries will be able to procure crude from Russia for a longer time as supply concerns continue to cloud energy security.
What sanction waiver on Russian crude means for India?
For India, which depends on imports for nearly 90% of its crude oil needs, the waiver carries immediate significance. In recent weeks, with Middle East supplies under pressure, Indian refiners stepped up their intake of Russian crude. Earlier, purchases had slowed after US sanctions targeted major Russian producers such as Rosneft and Lukoil, but the shifting supply landscape has brought Russian oil back into focus.“India is grabbing all the Russian crude it can get its hands on,” Vandana Hari, founder of Singapore-based consultancy Vanda Insights had earlier told Bloomberg. “I expect India to continue maximizing Russian intake as long as its flows from Persian Gulf remain crimped.” she added.At the same time, India has consistently maintained that it has not ruled out purchasing Russian crude. Government officials have also said that India’s approach remains guided by practical considerations. “Our priority is to source the energy needed to meet our domestic demand,” Sujata Sharma, joint secretary in the oil ministry had earlier stated. The decision, she said, “is driven by the technical commercial feasibility of the crude and the commercial sense it makes to our refiners.”Import trends highlight this shift. According to data from Kpler, India’s purchases of Russian crude reached 1.98 million barrels per day in March, the highest level since June 2023. Although imports have eased to 1.57 million barrels per day so far in April, this decline has been linked to maintenance work at Nayara Energy’s 400,000 barrel-per-day refinery. Industry executives expect volumes to rise again from next month.The initial waiver introduced in March had already enabled significant inflows, with India securing around 60 million barrels for delivery this month. At the same time, a build-up of Russian crude at sea, estimated at about 155 million barrels in early January, has started to reduce as Indian buyers increase purchases. Current volumes are estimated at roughly 100 million barrels.For India, the extension provides a narrow but important window to secure supplies, even as broader uncertainties around the Middle East and global energy flows continue to shape its import strategy. The extension comes as the Middle East conflict has stretched through almost seven weeks. The war began on February 28, when the US and Israel launched joint strikes on Iran, after which the country tightened its noose over the Strait of Hormuz, straining global oil supplies.
