The decision is said to be aimed at keeping global energy supplies from being interrupted, although Washington still maintains sanctions against Moscow.
US Treasury Secretary Scott Bessent confirmed that Washington has allowed India to temporarily buy Russian oil being transported by oil tankers offshore, in a move considered quite unexpected amidst sanctions against Moscow still being maintained.
According to Mr. Bessent, the US Treasury Department has issued a special 30-day license for Indian oil refineries to purchase Russian oil that is "stuck" on oil tankers.
To ensure oil continues to flow into the global market, the Ministry of Finance issued a 30-day temporary exemption allowing Indian refineries to buy Russian oil," Mr. Bessent wrote on social network X.
However, US officials emphasized that this is only a short-term measure and does not aim to bring significant financial benefits to Moscow.
This measure is intentionally designed with a short term, only allowing transactions related to the amount of oil already in the sea, so it will not bring significant financial benefits to the Russian government," Mr. Bessent said.
According to the general permit announced by the Foreign Assets Administration (OFAC) of the US Treasury Department, licensed transactions include crude oil and oil products originating from Russia that were loaded onto ships before or on March 5.
The regulation also allows unloading goods from oil tankers, including those on the restricted list.
Russian oil or oil products loaded onto ships before 0:01 on March 5 (US Eastern time) can be traded and unloaded until April 4.
This means that Russian oil tankers on the way or anchored offshore can still complete transactions with Indian oil refineries within the allowed time.
In addition to allowing temporary trading with Russian oil, Mr. Bessent also said that Washington expects India to increase oil purchases from the US in the near future.
We predict New Delhi will increase US oil imports," the US Treasury Secretary added.
In recent years, India has become one of Russia's largest customers of oil after the West imposed energy sanctions on Moscow. Russia's oil prices have fallen sharply compared to the world market, making this supply particularly attractive to Indian oil refineries.
Washington's temporary licensing move is therefore seen by observers as an effort to balance the goal of maintaining global energy supply and economic pressure on Russia.
In the context that the world oil market is being affected by many geopolitical tensions, especially the Iranian conflict, this decision may help avoid the risk of short-term supply disruptions, while creating time for markets to adjust energy flows in the coming weeks.
