The U.S. Department of the Treasury has temporarily relaxed sanctions, allowing Indian refineries to purchase Russian oil that has been stranded on tankers at sea. This measure, announced by Treasury Secretary Scott Bessent, is intended to ensure continued oil supplies to the global market.
Bessent stated, “The energy program of President Trump has led to oil and gas production reaching the highest levels in recorded history.” The 30-day exemption from sanctions enables Indian refineries to acquire Russian oil, which is already in transit.
“This deliberately short-term measure does not provide significant financial benefits to the Russian government,” Bessent added, emphasizing that it pertains only to oil currently unable to reach its destination.
On March 5, Reuters reported that Hindustan Petroleum Corporation, a state-owned Indian oil company, resumed purchases of Russian oil after a three-month hiatus. This decision occurred prior to U.S. and Israeli military actions in Iran.
Sources indicated that India had approached the Trump administration for permission to buy Russian crude oil due to the ongoing conflict in Iran. Approximately 40% of India’s oil imports come from the Middle East via the Strait of Hormuz. By reducing its imports of Russian oil, India has managed to avoid a 25% tariff imposed by the U.S. and has entered into a temporary trade agreement with the United States.
In a related development, on January 27, Indian Oil Minister Hardeep Puri noted a continuing decline in Russian oil imports as India seeks to diversify its energy suppliers. Despite U.S. pressure and reduced supplies from Russia, Indian companies have maintained steady oil purchases.
On February 2, President Trump stated that Indian Prime Minister Narendra Modi had agreed to halt purchases of Russian oil, opting instead to increase imports from the U.S. and Venezuela. However, Modi did not confirm any commitment to cease Russian oil imports during his remarks.
On February 6, Trump signed an order eliminating the 25% tariff on all imports from India, which had been enacted in response to India’s purchases of Russian oil. Starting February 7, 2026, goods imported from India will no longer be subject to this additional tariff, which will be reduced to 18%.
Previously, on July 30, 2025, Trump had imposed a 25% tariff on imports from India, citing the country as one of the largest importers of Russian oil. Following this, he announced further increases in tariffs on Indian goods in August.
On September 19, Bloomberg reported that India had no plans to cease its purchases of Russian oil, despite U.S. pressure and ongoing trade negotiations. During a speech at the United Nations General Assembly on September 23, Trump labeled China and India as “primary sponsors” of Russia’s war against Ukraine, due to their continued purchases of Russian oil and gas.
Subsequently, Bloomberg reported that India has requested permission from the U.S. to replace Russian oil with Iranian and Venezuelan supplies.
The U.S. has granted a temporary exemption from sanctions, allowing Indian refineries to purchase stranded Russian oil. This decision aims to maintain global oil supply while limiting financial benefits to Russia.