WASHINGTON: The United States (US) has announced the termination of a waiver previously granted to India that allowed discounted purchases of Russian crude oil, marking a shift in Washington’s approach to energy-related sanctions.
Read More: US approval for Russian oil sparks outrage from Indian opposition
According to reports cited by an Indian publication, Indian rokefineries had placed orders for nearly 30 million barrels of Russian oil during the period when the exemption was in place. The waiver had temporarily eased restrictions on trade involving Russia, enabling India to continue sourcing discounted crude amid global supply fluctuations.
US will not renew oil sanctions waiver for Russia & Iran.
India, a key buyer of discounted Russian crude, may now face rising costs and inflation pressures.https://t.co/o8PSEv0X98— UdaipurTimes (@UdaipurTimes) April 16, 2026
However, officials from the US Treasury stated that the exemption period for deals finalised before March 11 has now expired. The decision effectively limits India’s ability to enter into new discounted oil agreements with Russia under the previous arrangement.
US authorities clarified that while India may still receive shipments already in transit at sea, it will no longer be permitted to sign new contracts for discounted Russian crude. The move is part of broader efforts by Washington to tighten enforcement of sanctions targeting Russia’s energy exports.
The earlier waiver had provided India with a one-month temporary allowance to manage energy needs and stabilise domestic fuel prices. During that period, Indian refiners significantly increased imports of Russian oil, taking advantage of lower prices in the global market.
Analysts say the policy change could impact India’s energy procurement strategy and may lead to adjustments in sourcing from alternative suppliers. It also reflects ongoing geopolitical tensions surrounding global energy trade and sanctions compliance.
Read More: Iran conflict prompts India–Russia LNG talks
The development underscores the continued pressure on global oil markets as major economies navigate competing economic and political priorities linked to the ongoing sanctions regime against Russia.