US Acknowledges India's Compliance with Russian Oil Sanctions Amid Global Tensions

The United States has recognized India's compliance with sanctions on Russian oil, suggesting a temporary easing of restrictions to stabilize the global energy market. Amid rising tensions in the Middle East, particularly the Iran-Israel conflict, US Treasury Secretary Scott Basset praised India's efforts to halt purchases of sanctioned Russian oil. In return, India has been granted a 30-day waiver for stranded oil shipments. This shift in US policy reflects a response to the ongoing crises, indicating a potential increase in US oil purchases by India in the future. Read on to explore the implications of this development.

By Narendra Chaudhary Mar 7, 2026, 11:54 IST

US Praises India's Adherence to Russian Oil Restrictions

The United States has commended India for its adherence to sanctions on Russian oil and has hinted at a temporary easing of certain restrictions to stabilize the global energy market. This development comes in light of escalating tensions in the Middle East, particularly the Iran-Israel conflict and crises in the Strait of Hormuz, which have significantly impacted oil supply and driven global prices upward.

US Treasury Secretary Scott Basset referred to India as a "very good actor" during an appearance on Fox Business's program "Kudlow." He noted that the US had requested India to halt all purchases of sanctioned Russian oil this summer and fall, a request that India has complied with rigorously. Basset stated, "The Indians have been very good actors. We asked them to stop buying sanctioned Russian oil, and they did just that."

In exchange for this cooperation, the US has granted India a 30-day temporary waiver through the Office of Foreign Assets Control (OFAC). This waiver applies to the delivery and purchase of Russian crude oil and petroleum products currently stranded at sea, valid until April 4, 2026. Basset clarified that this is a "deliberately short-term measure" designed to ensure that Russia does not gain significant financial benefits, as it only pertains to cargoes already loaded.

He further mentioned that the US is considering easing restrictions on other Russian oil cargoes to prevent a temporary shortage in global oil supply and maintain market stability. Basset expressed optimism that India would increase its purchases of US oil in the future, given that India is a crucial partner for the United States.

This move reflects a shift in US policy over recent months. Previously, the US had exerted pressure on India regarding its Russian oil purchases, even imposing punitive tariffs. However, due to the ongoing crisis in the Middle East, including tensions with Iran and congestion in the Strait of Hormuz, practical relief is now being offered.