US extends waiver allowing India and other countries to buy Russian oil

US President Donald Trump's administration on Friday issued a waiver allowing India and other countries to buy sanctioned Russian oil and petroleum products at sea for about a month, seeking to control global ‌energy prices that ⁠have shot ⁠higher during the US-Israeli war on Iran, reported Reuters.

The US Treasury Department posted the license to its website late on Friday, ‌allowing countries to ⁠purchase ⁠Russian oil loaded on vessels as of Friday through May 16.

The license, part of the administration's effort to control global energy prices that have shot higher during the U.S.-Israeli war on Iran, replaces a 30-day waiver that expired on April 11. It excludes transactions involving Iran, Cuba and North Korea.

ASLO READ | US move on Russian oil waiver adds pressure as Iran war strains energy markets, India engaged in talks: Sources

Global oil prices tumbled 9% on Friday ⁠to about $90 a ‌barrel after Iran temporarily reopened the Strait of Hormuz, an oil choke point in the Gulf. But the war has already created the worst global energy supply disruption in history, the International Energy Agency has said.

Trump has faced pressure from partner countries on the oil price. A US source told Reuters that countries on the sidelines of Group of 20, World Bank and International Monetary Fund meetings in Washington this week had requested the U.S. extend the waiver. And he spoke about oil this week in a call with Prime Minister Narendra Modi of India, a big purchaser of Russian oil. The waiver on Iranian oil, which the Treasury Department issued on March 20, allowed some 140 million ‌barrels of oil to reach global markets and helped relieve pressure on energy supply, Bessent said last month.

The issue of extending the waiver for imports figured during India's foreign secretary's recent visit to the USA. It has been learnt that India was engaged with the USA on extending the waiver on Russian oil imports, given the constraints on supply chains following the war in West Asia.

The extension comes two days ⁠after Treasury ‌Secretary Scott Bessent said Washington will not be renewing the waiver that allowed countries to purchase Russian ⁠oil without facing U.S. sanctions.

ALSO READ | India's crude imports down 21%; Russia tops, Iran gains

Russia's presidential envoy Kirill Dmitriev had said the first waiver would free 100 million barrels of Russian crude, equal to almost a day's worth of global output.

Though the reprieve on sanctions could temporarily boost world supplies of oil, it has not prevented petroleum prices from spiking due to the partial ‌closure of the Strait of Hormuz, through which about 20% of the world's oil and gas was shipped daily before the ⁠war.

The waivers could complicate the West's efforts to deprive Russia of revenue for its war in Ukraine and put Washington at odds with its allies.

Meanwhile, in New Delhi, Russian Ambassador to India Denis Alipov has assured that Russia will step up energy exports to India including crude oil, LPG and LNG. Russia has significantly increased oil supplies to India and is ready to continue delivering energy resources in whatever volumes India requires, according to Alipov. India has been a reliable partner, which is a fact, with a consistent approach unlike the West.

India's crude oil imports from Russia surged in March, data from a European think tank showed. New Delhi's crude oil purchases from Moscow more-than-tripled in March to $5.8 billion from $1.54 billion in February, the Center for Research on Energy and Clean Air (CREA) said on Tuesday.

India also imported coal worth $371 million and oil products amounting to $196 million from Russia in March, according to the report.New Delhi has emerged as a key market for Russian oil since March 2022. It bought almost 2 million barrels a day in 2024 and nearly $44 billion of crude from Moscow last year.

(With inputs from Reuters)