US approval for India to obtain Russian oil

The US Treasury Department has announced a temporary relief for India to purchase Russian crude oil stranded at sea. According to US Treasury Secretary Scott Bessent, this authorization, valid for a period of 30 days, is expected to maintain a continuous supply of oil in the global market.

Furthermore, a key objective is to alleviate the pressure arising from Iran's jeopardizing of global energy supply. This relief is also good news for Sri Lanka, which obtains oil from India, to avoid a crisis.

This decision has been introduced as a planned short-term measure, and the US emphasizes that it will not result in significant financial benefits for the Russian government. The reason is that this approval applies only to oil stocks already on ships at sea. Previously, after the invasion of Ukraine, US President Donald Trump imposed sanctions on Russian crude oil, and Washington had strongly pressured India to refrain from purchasing Russian oil with the aim of blocking financial flows used for the war.

Although India has been a major buyer of cheap Russian oil since 2022, this situation changed significantly over the past few months due to US pressure and new trade agreements between the two countries. Accordingly, by early 2026, the percentage of oil India receives from Russia decreased to less than 20%, reaching its lowest value in 44 months. Concurrently, Indian refinery companies took steps to diversify their energy sources by redirecting their supply networks to Gulf countries, including Saudi Arabia, and the United States.

However, the escalating US-Israel conflict involving Iran has severely impacted global oil supply. Specifically, disruptions to transport activities through the Strait of Hormuz, the main sea route through which about 40% of India's crude oil imports arrive, have forced India to face some energy shortages. In this critical context, with the risk of rising global oil prices, Russia is reportedly once again ready to supply oil as needed.

According to this temporary relief immediately granted by the US, effective until the first week of April, India will be able to purchase Russian oil stocks loaded onto vessels before March 5, 2026. Indian refinery companies are already working quickly to purchase these oil stocks to meet urgent energy needs arising from the Middle East crisis. This appears to be not a complete reliance on Russian oil, but merely an urgent and practical step taken with US approval to overcome the current crisis.