US extends Russian oil sanctions waiver: What the move means for India’s crude imports

The United States has extended a temporary waiver allowing Russian crude oil already in transit to reach buyers despite existing sanctions, giving importers including India additional time to complete transactions. The new deadline has been extended to June 17.

The move comes as global oil markets remain sensitive to supply disruptions amid tensions in West Asia and uncertainty linked to the US-Iran situation, while India continues importing large volumes of Russian crude.

According to the US Treasury Department, the waiver applies only to Russian oil cargoes already at sea and does not represent a broader easing of sanctions on Russian energy exports.

Scott Bessent said the extension was intended to provide flexibility and reduce potential disruptions in energy markets.

“This general licence will help stabilise the physical crude market and ensure oil reaches the most energy-vulnerable countries,” he said.

What the extension means for India

For India, the decision reduces the possibility of immediate supply disruptions because shipments already in transit can continue to be delivered.

Russia has become a major source of discounted crude for India, and the continuation of waiver mechanisms allows refiners to maintain existing trade flows with fewer legal and logistical uncertainties.

However, repeated short-term extensions also create uncertainty for long-term planning, as companies continue navigating changing sanctions frameworks and shipping arrangements.

The move also gives India more room to balance its energy requirements with Western sanctions policies.

India’s growing reliance on Russian oil

India has emerged as one of the largest buyers of Russian crude since Western sanctions on Moscow intensified.

Shipping data from Kpler showed India imported a record 2.25 million barrels per day from Russia in March, nearly double February levels. Russian oil now accounts for around half of India’s total crude imports.

Imports remained elevated in April at approximately 2.1 million barrels per day, although a brief decline was linked to disruptions following drone attacks on Russian export infrastructure.

India says purchases continue regardless of waiver

India has repeatedly stated that crude purchases are guided by pricing and supply considerations rather than political factors.

Sujata Sharma said India’s buying decisions were not dependent on the latest US exemption.

“Regarding the American waiver on Russia, I would like to emphasise that we purchased from Russia earlier, before the waiver also, during the waiver also, and now also,” she said.

Indian refiners had earlier reduced purchases from firms such as Rosneft and Lukoil after tighter sanctions measures, but trade flows have continued through alternative arrangements.

To facilitate shipments, India’s Directorate General of Shipping has also expanded the number of approved Russian insurers, helping maintain smoother trade operations.