US Grants India Permission to Purchase Russian Oil Amid Global Supply Concerns

US Approves Russian Oil Purchases for India

New York/Washington: The United States has authorized India to acquire Russian oil currently in transit, aiming to alleviate global supply issues amid ongoing conflicts in West Asia.

US Treasury Secretary Scott Bessent stated in a Fox Business interview that the Treasury has permitted India to begin purchasing Russian oil that is already en route.

"India has been compliant with our requests to halt purchases of sanctioned Russian oil this fall. They were set to replace it with US oil, but to address the temporary global oil supply gap, we have allowed them to accept Russian oil," he explained.

Bessent noted that there are substantial amounts of sanctioned crude oil on vessels, and by lifting sanctions on these, the Treasury can enhance supply. He emphasized that the US will continue to announce measures aimed at providing market relief during this conflict.

Other officials from the previous Trump administration have echoed that the US has now permitted India to buy Russian oil, following the imposition of a 25% tariff on India's oil imports from Russia.

Energy Secretary Chris Wright mentioned on X that the US is allowing India to refine and quickly market the Russian oil already on ships in Southern Asia to ensure a steady supply amid the ongoing US-Israel conflict with Iran.

"We have implemented short-term strategies to stabilize oil prices. By allowing India to refine this oil, we can quickly increase supply and alleviate pressure on the market," Wright stated.

In an ABC News Live interview, he assured that long-term oil supplies are sufficient, but immediate action is necessary to ensure oil availability.

"As oil prices rise due to constraints from the Strait of Hormuz, we are taking short-term measures to utilize the floating Russian oil storage around Southern Asia. We have advised India to purchase this oil and refine it, which will help ease competition for oil in the global market," Wright added.

He clarified that these measures are temporary and do not signify a shift in US policy towards Russia, but rather a necessary step to manage oil prices effectively.

On Thursday, in light of escalating tensions with Iran, the US announced a temporary 30-day waiver allowing Indian refiners to buy Russian oil.

Bessent remarked that this short-term measure is not expected to significantly benefit the Russian government, as it only pertains to oil already stranded at sea.

"India is a crucial ally for the US, and we expect New Delhi to increase its purchases of US oil. This temporary measure will help mitigate the pressures caused by Iran's actions in the global energy market," he stated.

Previously, Trump had imposed a 25% tariff on India for its Russian oil purchases, arguing that these transactions supported Russia's military efforts in Ukraine.

Last month, the US and India announced a framework for an Interim Trade Agreement, with Trump lifting the punitive tariffs after India committed to ceasing energy imports from Russia.

A Treasury Department statement authorized transactions involving Russian oil loaded on vessels as of March 5, 2026, allowing for delivery to India, provided the purchaser is an Indian entity.

The general license issued by the Treasury does not permit any other transactions prohibited by existing Executive orders, including those involving Iran.