US Will Not Extend Russian, Iranian Oil Sanctions Waiver; India Among Affected Buyers

Washington: The US has announced that it is not extending the waiver on sanctions, which allowed countries, including India to buy  Russian and Iranian oil. US Treasury Secretary Scott Bessant announced this at a White House press briefing. India was a major beneficiary of this waiver. 

After the Iran war broke out, the US granted a waiver to purchase Russian and Iranian oil already at sea, aimed at mitigating global supply disruptions caused by the Strait of Hormuz crisis.

What did US say?

Treasury Secretary Scott Bessent during the press conference said that licenses for Russian and Iranian oil would not be renewed, adding that the oil already at sea had been used. 

"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.

Is India a major beneficiary of the exemption?

India was a significant beneficiary of these sanctions waivers. According to reports, citing government officials, India ordered 30 million barrels of oil from Russia following the sanctions waiver. 

American politicians criticized the waivers on Russian and Iranian oil, arguing that they were easing financial pressure on Moscow and Tehran.

What was the 30-day exemption?

On March 12, the US Treasury Department issued a 30-day waiver allowing Indian refineries to purchase Russian oil. This was aimed at stabilizing global energy markets amid rising tensions in the Middle East.

The Indian refiners were allowed to purchase Russian energy that had already been loaded onto tankers. A few days later, this waiver was extended to some other countries, but the waiver expired on April 11.

"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,” said Bessent in a statement announcing the waiver.

Later, the US introduced another 30-day license permitting countries to purchase Iranian oil. 

The exemption for Russian oil expired on April 11, while the exemption for Iranian oil will expire on April 19.