Indian refiners are purchasing millions of barrels of Russian crude cargoes already at sea after the United States issued a temporary waiver allowing such transactions, according to sources familiar with the matter.
The move comes as India looks to safeguard its energy supplies amid escalating geopolitical tensions in the Middle East that could disrupt oil flows through key shipping routes.
According to officials cited by Reuters, the US Treasury Department has issued a 30-day waiver permitting Indian refiners to purchase Russian crude cargoes already in transit. The exemption allows these shipments to proceed despite existing sanctions targeting Russia’s energy sector.
US Treasury Secretary Scott Bessent said the measure is intended to prevent disruptions in global oil markets while geopolitical tensions remain elevated.
“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,” Bessent said in a statement.
He added that the waiver is strictly limited to shipments already stranded at sea and is unlikely to provide significant financial benefits to the Russian government.
Indian refiners secure Russian supplies
Following the waiver, several Indian state-run refiners have moved quickly to secure cargoes. According to trading sources, Indian Oil Corporation, Bharat Petroleum Corporation, Hindustan Petroleum Corporation and Mangalore Refinery and Petrochemicals Ltd have been negotiating with traders to purchase Russian crude.
One source said Indian state refiners have already bought around 20 million barrels of Russian oil through traders.
Industry data suggests that HPCL and MRPL last received Russian crude cargoes in November, but the recent developments have prompted refiners to re-enter the market.
Russian crude now trading at premium
Traders said Russian Urals crude is currently being offered to Indian buyers at a premium of $4–$5 per barrel above Brent for deliveries scheduled for March and early April.
This marks a sharp shift from earlier pricing. Before the current geopolitical crisis began on February 28, the same crude was being offered at a discount of roughly $13 per barrel, reflecting the impact of sanctions and weaker demand.
One trader involved in Russian oil sales said supply availability has now become more important than price.
“India refiners are back in the market. Nowadays more than prices, availability of molecules is the issue,” the trader said.
Sources also indicated that Reliance Industries has approached traders to secure prompt Russian crude cargoes.
Energy security concerns for India
India remains heavily dependent on imported oil, making supply stability a critical concern during geopolitical disruptions.
The country imports roughly 40% of its crude oil from the Middle East, and a large portion of those shipments pass through the Strait of Hormuz, a major global energy transit route that has become increasingly vulnerable during the ongoing conflict.
India’s strategic reserves and commercial inventories currently cover only around 25 days of demand, highlighting the urgency for refiners to secure alternative supplies if Middle East exports face disruptions.
The temporary US waiver is therefore seen as a short-term measure designed to stabilize global energy markets and ensure that oil flows continue while geopolitical tensions evolve.