'Our allies in India good actors': Scott Bessent on 30-day waiver for Russian oil shipments despite sanctions

US Treasury Secretary Scott Bessent said the United States has temporarily allowed India to accept shipments of sanctioned Russian oil that are already at sea, describing the move as a short-term step to manage a temporary gap in global oil supplies.

In a post on X, Bessent said global oil markets remain well supplied due to the US administration’s policy of “American Energy Dominance.” However, he noted that Washington has made a limited exception for India as part of efforts to stabilise supply.

“Our allies in India have been good actors and have previously stopped buying sanctioned Russian oil,” Bessent said.

He added that the temporary permission only applies to Russian oil cargoes that are already in transit and stranded at sea. According to him, the measure is designed to ease immediate supply pressures without providing meaningful financial gains to Russia.

"This deliberately short-term measure will not provide significant financial benefit to the Russian government because it only authorizes transactions involving oil already stranded at sea," he wrote.

The statement comes as global energy markets remain sensitive to supply disruptions amid ongoing geopolitical tensions and sanctions affecting Russian energy exports.

Here's what you need to know

What exactly did the US grant to India?

The US has issued a temporary 30-day waiver (effective March 5 to April 4, 2026). It permits Indian entities to purchase Russian oil that was already loaded onto ships before March 5. This specifically targets "stranded" crude currently floating near Southern Asia—much of it stuck due to payment issues with China.

Why is this happening now?

It is a short-term fix for supply gaps caused by constraints in the Strait of Hormuz due to Iran tensions. While long-term global supplies remain "abundant," this maneuver aims to prevent immediate price spikes by getting existing oil into refineries and back onto the market quickly.

Does this mean the US is changing its policy on Russia?

No. The US maintains that this does not provide a financial boost to Russia’s war efforts. The waiver excludes new production and is strictly limited to oil already "on the water" destined for Indian ports.

How does this relate to previous US-India trade tensions?

The move marks a significant shift as the Trump administration originally imposed 25% tariffs on India for purchasing Russian oil. Those tariffs were lifted last month after a Supreme Court struck them down by a 6-3 verdict. India has committed to halting long-term Russian imports in favor of increased US oil purchases.

US officials have praised India as "good actors" for complying with sanctions and planning for US-based substitutes.

What are US officials saying about the deal?

The administration frames India as an "essential partner" in countering Iran’s attempts to "take global energy hostage." Treasury Secretary Scott Bessent: "Treasury agreed to let our allies in India start buying Russian oil that was already on the water... to ease the temporary gap."

Energy Secretary Chris Wright: "Buy that oil. Bring it into your refineries... releases pressure on other refineries around the world."

Did Secretary Bessent suggest that more Russian oil could be unsanctioned?

Yes. In a recent interview, Scott Bessent indicated that the current waiver might not be the last of its kind. He framed the move as a way to unlock hundreds of millions of barrels already in transit to create an "instant supply."

He said, "The Indians had been very good actors... But to ease the temporary gap of oil around the world, we have given them permission to accept the Russian oil. We may unsanction other Russian oil."

What is the long-term plan?

This is viewed as a "stop-gap" measure. Once the 30-day window closes, India is expected to ramp up its intake of US oil. This aligns with the current US energy boom, where domestic oil and gas production are reaching record highs.