US Encourages India to Purchase Russian Oil Amid Global Supply Concerns
US Energy Secretary's Call to India
The United States has advised India to acquire Russian oil currently at sea and redirect these shipments to Indian refineries. This recommendation aims to alleviate concerns regarding potential supply shortages and escalating prices due to the ongoing conflict in West Asia, as stated by US Energy Secretary Chris Wright.
Wright clarified that this initiative is a temporary measure intended to stabilize the global oil market and does not indicate a change in the US stance towards Russia. In a recent interview, he mentioned discussions with Indian officials about the possibility of purchasing Russian crude that is awaiting unloading at Chinese refineries.
“India has been a valuable partner in this situation. I reached out to Indian authorities, as did Treasury Secretary Scott Bessent, to discuss the substantial amount of oil currently floating and waiting to be offloaded at Chinese ports,” Wright explained.
He suggested that instead of letting the oil sit for weeks, it would be beneficial to expedite its arrival at Indian refineries to mitigate fears of oil shortages and price surges in the market.
Clarification on US Policy
Wright reiterated that the US policy regarding Russia remains unchanged and that India is fully aware of this position. When asked if the Treasury Department's 30-day waiver for Indian refiners to buy Russian oil during the US-Israel conflict with Iran contradicts the previous administration's goal of isolating Moscow, he affirmed that it does not.
“This is merely a practical solution with a limited timeframe. There is no alteration in our policy towards Russia,” he stated.
He also noted that India has significantly reduced its Russian oil imports and is increasing its purchases from the US, Venezuela, and other sources.
Support from US Officials
US Ambassador to the United Nations, Mike Waltz, defended the decision as a necessary and temporary measure. “I must clarify that this is a 30-day pause to facilitate the transfer of millions of barrels of oil currently on ships to Indian refineries,” he remarked in an interview.
Waltz emphasized that this situation is expected to be short-lived, suggesting that it represents a minor inconvenience for a long-term solution to prevent Iran from manipulating global energy supplies.
Last week, the US announced it would allow India to purchase Russian oil already loaded on vessels, aiming to alleviate global supply pressures stemming from the West Asia conflict.
Details of the Authorization
Treasury Secretary Bessent confirmed that the Treasury Department had permitted India to resume buying Russian oil that was already in transit. He noted that India had previously halted purchases of sanctioned Russian oil at the US's request and intended to replace those imports with American crude.
“The Indians have been compliant. We had asked them to stop buying sanctioned Russian oil this fall, and they did. They were planning to substitute it with US oil. However, to address the temporary oil gap globally, we have authorized them to accept Russian oil,” Bessent explained.
He mentioned that there are “hundreds of millions of barrels” of sanctioned crude currently at sea, and temporarily lifting restrictions on these shipments could enhance global supply.
According to the US Treasury Department, the license allows transactions necessary for the sale, delivery, or offloading of Russian-origin crude oil or petroleum products loaded onto vessels before March 5. This authorization is valid until April 4, provided the delivery occurs at an Indian port and the purchaser is an entity organized under Indian law.
However, the license does not permit transactions involving Iranian goods or services, which remain prohibited under existing US sanctions.