Indian refiners purchased 30 million barrels of Russian crude following a US temporary waiver
IOC and Reliance Industries each snapped up about 10 million barrels of "stranded" oil already at sea
The 30-day waiver, effective March 5 to April 4 was issued by US Treasury Secretary Scott Bessent
Indian refiners have snapped up roughly 30 million barrels of Russian crude since the United States granted a temporary waiver allowing purchases of oil already at sea, Bloomberg reported.
The purchases which reportedly included grades such as Urals, ESPO and Varandey were executed quickly after the waiver, with Indian Oil Corporation and Reliance Industries each buying about 10 million barrels from unsold, uncommitted cargoes that were already in Asian waters.
2 March 2026
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The report stated that the barrels traded at small premiums of $2–$8 per barrel to London’s benchmark amid tight regional supply.
US Pressure on Russian Crude Purchase
The waiver, issued late last week, allows transactions for Russian crude and petroleum products that were loaded onto vessels before March 5 provided they are delivered to India and purchased by Indian firms.
The move came as the closure of the Strait of Hormuz and disruptions to Middle Eastern exports created an urgent shortfall of Gulf barrels, prompting refiners to seek alternatives fast. India had been reducing Russian purchases amid previous US pressure, but the sudden Middle East supply shock reversed that trend.
US officials framed the waiver as a short-term, narrowly targeted response. Karoline Leavitt, speaking for the White House, said the measure was meant to “accept” already-loaded cargoes to stabilise global supplies and stressed it would not provide significant financial benefit to Russia. She cited decisions by US President Donald Trump, Treasury Secretary Scott Bessent and the national security team in permitting the temporary relief.
Implication of Crude Purchase
Market and policy implications are immediate. The buys cleared spot-market availability and helped blunt a sharper price spike, but raise questions about sanctions’ design and long-term energy diplomacy. Traders note the premium for Russian grades has flipped from deep discounts seen earlier to modest premiums as Middle East supply tightened. Policymakers will watch whether the waiver remains time-limited or evolves into a broader carve-out.
For Indian refiners, the purchases provide near-term feedstock relief; for global markets, the episode underscores how geopolitical shocks can force rapid, pragmatic adjustments to sanctions and trade policy to keep oil flowing.
