Washington, March 6
In a significant development, in the wake of the ongoing Iranian war, the Trump administration authorised a one-month window for India to import Russian crude oil.
"President Trump’s energy agenda has resulted in oil and gas production reaching the highest levels ever recorded. To enable oil to keep flowing into the global market, the Treasury Department is issuing a temporary 30-day waiver to allow Indian refiners to purchase Russian oil," Bassent said.
"This deliberately short-term measure will not provide significant financial benefit to the Russian government as it only authorizes transactions involving oil already stranded at sea. India is an essential partner of the United States, and we fully anticipate that New Delhi will ramp up purchases of US oil. This stop-gap measure will alleviate pressure caused by Iran’s attempt to take global energy hostage," he said.
"The move allows transactions tied to Russian crude oil or petroleum products that were already loaded onto vessels before early March. The shipments must be delivered to Indian ports and purchased by companies incorporated under Indian law," Bassent said.
Under the licence issued by the Department of Treasury, transactions necessary for the sale, delivery, or offloading of Russian crude loaded on vessels before March 5 are authorised until April 4.
The authorisation applies only to deliveries to ports in India. The buyers must be Indian entities, the Treasury license said.
The licence allows a range of activities required to complete those shipments. These include services linked to the docking and anchoring of vessels, crew safety and emergency repairs. It also permits routine maritime services such as vessel management, crewing, bunkering, piloting, insurance and other operational support.
The move comes as the administration seeks to stabilise global energy markets amid rising tensions in the Middle East.
Officials said the measure is meant to allow shipments already in transit to reach their destination without violating US sanctions rules.
The Treasury Department stressed that the licence is narrow and temporary. It does not represent a broader easing of sanctions on Russia.
The authorisation does not permit other transactions restricted under US sanctions laws. It also does not allow dealings involving Iran or Iranian-origin goods or services that remain prohibited under existing regulations.
The licence was issued by the Treasury Department’s Office of Foreign Assets Control and signed on March 5.
The United States and its Western allies imposed sweeping sanctions on Russia after Moscow’s invasion of Ukraine in 2022. The restrictions targeted major sectors of the Russian economy, including finance, defence, and energy.
