The United States has decided against renewing sanctions exemptions for Russian and Iranian oil purchases, potentially impacting global energy markets and trade relationships.
Key Points
- The US will not renew sanctions exemptions for purchasing Russian and Iranian oil, ending a temporary waiver.
- India's crude oil purchases from Russia significantly increased in March, becoming the second-highest buyer of Russian fossil fuels.
- The US initially granted the waiver to stabilise the energy market amid concerns of supply shortages and price spikes.
- The end of the sanctions waiver could impact global oil prices and trade dynamics.
The United States on Wednesday ruled out granting any further exemption from sanctions for the purchase of Russian or Iranian oil.
US Treasury Scott Bessent made the announcement at a press conference at the White House.
"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," Bessent told reporters here.
On March 5, the US issued a 30-day sanctions waiver to India, permitting it to buy Russian oil despite sanctions imposed over the Ukraine war.
A few days later, the US extended the sanctions waiver to a few other nations. The waiver from sanctions expired on April 11.
Impact on India's Oil Imports
India's crude oil purchases from Russia more than tripled to 5.3 billion euros in March as volumes doubled and a surge in oil prices pushed up the import bill.
European think tank Centre for Research on Energy and Clean Air (CREA), in a report, said after a drop in purchases in February, India was back to a buying binge in March.
"India was the second-highest buyer of Russian fossil fuels in March 2026, importing a total of EUR 5.8 billion of Russian hydrocarbons. Crude oil products constituted 91 per cent of India's purchases, totalling EUR 5.3 billion," it said.
Coal (EUR 337 million) and oil products (EUR 178.5 million) constituted the remainder of their monthly imports.
In February, India was the third largest importer, purchasing Russian hydrocarbons worth 1.8 billion euros.
Rationale Behind the Initial Waiver
After issuing the sanctions waiver, Energy Secretary Chris Wright said the US asked India to buy Russian oil to "tamp down" fears of supply shortages and price spikes amid the ongoing West Asia conflict.
He said the move was a short-term, pragmatic effort to stabilise the market and did not signal any change in Washington's policy towards Russia.
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