The U.S. Treasury Department on Friday announced a 30-day waiver, allowing India to purchase Russian oil amid Middle East crisis. This has given temporary relief to India as it will help mitigate the spike in the price of oil. However, government sources said that Russian oil may not come at discounted prices now and that China is also competing for supply. The government is currently studying the details of the order. U.S. Treasury Secretary Scott Bessent said that the US is granting this relief to India due to pressure caused by Iran’s attempt to take global energy supplies hostage. Iran has currently blocked the Strait of Hormuz due to which global oil supplies are constrained at present.
Few days ago, the Government of India issued a statement saying, India currently has 50 days of oil reserves, which includes, 25 days of crude oil reserve and 25 days of petrol and diesel reserve. India has recently increased oil supply from the U.S. andreduced its oil imports from Russia. India imported $1.98 billion worth of crude oil from Russia in January 2026, the lowest in 44 months. More than 55% of India’s oil imports pass through the Strait of Hormuz. India stands out among large Asian economies that rely on crude and LNG from West Asia due to its high share of crude import from West Asia and pressure from US to reduce Russian oil imports, said Moody’s.
The Russian Deputy Prime Minister has expressed readiness to increase oil exports to India if required. The 30-day waiver provides short-term benefit to India, but it cannot compensate the imports from West Asia. However, the move is likely to provide benefit to Indian refiners. Russia may benefit temporarily from supply and price shocks caused by the conflict in Middle East. This is a short term waiver, which will not provide significant financial benefit to Russia as only the oil that is stranded in the sea would be used for imports.
