Highlights:
- US will not renew waivers for Russian and Iranian oil purchases
- India was a major beneficiary, importing large volumes during the waiver period
- The temporary waiver allowed purchase of oil already in transit
- US lawmakers criticized the policy for benefiting Russia
- The decision may affect global oil markets and India’s energy planning
The United States has announced it will not renew sanctions waivers that allowed countries, including India, to purchase Russian and Iranian oil. The decision was confirmed by US Treasury Secretary Scott Bessent on Wednesday (15).
“We will not be renewing the general license on Russian oil and we will not be renewing the general license on Iranian oil. That was oil that was on the water prior to March 11. So all that has been used,” said Bessent at a press conference.
India had been one of the main beneficiaries of these waivers. The policy had drawn criticism from US politicians, who argued that it reduced financial pressure on Moscow and Tehran.
The waiver was first introduced on March 12, when the US Treasury issued a temporary 30-day exemption. This allowed Indian refiners to purchase Russian oil that had already been loaded onto tankers before the sanctions tightened.
“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. 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,” Bessent said earlier while announcing the waiver.
The US government said the move was necessary to stabilize global energy markets. At the time, crude oil prices had risen above $100 per barrel following the outbreak of a conflict between the United States and Iran in late February.
Later, Washington introduced a similar 30-day waiver for Iranian oil purchases. While the Russian oil waiver expired on April 11, the Iranian waiver is set to expire on April 19.
Despite requests from several Asian countries, including India, the US chose not to extend these waivers. Reports suggested that India had ordered around 30 million barrels of Russian oil during the waiver period.
Before the waiver, Indian refiners such as Reliance had reduced their purchases from major Russian energy companies due to US sanctions. These included firms like Rosneft and Lukoil.
The waiver policy also faced strong political opposition in the United States. Senator Richard Blumenthal criticized the move and called for it to be stopped.
“No way the Russia sanctions waiver should be extended. Trump’s waiver has handed Russia an extra $150 billion a day to fuel its murderous war machine killing & kidnapping Ukrainian kids—while it aids Iran with intelligence to target our troops,” Blumenthal said in a post on X.
Other Democratic leaders, including Senate Minority Leader Chuck Schumer, also opposed the policy. They described the waivers as “dangerous” and urged the administration to reverse them.
“In addition to flouting notification requirements to Congress under the Countering America’s Adversaries Through Sanctions Act before relaxing sanctions on the Kremlin, Secretary Bessent characterized the license as a temporary and ‘short term’ measure that would not provide significant financial benefit to the Russian government," the senators said.
"But Russia’s decision to cancel its planned budget cuts demonstrates that, as we warned, Russia is directly benefiting from the administration’s sanctions relief. It is incumbent on the Trump Administration to reverse this dangerous policy, ensure that Russia does not reap any additional benefit and prevent the United States from further boosting Putin’s war machine,” they added.
