The United States has announced that it will not renew the sanctions waivers that had permitted the purchase of Russian and Iranian oil without facing penalties.
India was among the key beneficiaries of these waivers, which allowed it to continue securing Russian oil supplies during a period of global disruption, particularly after tensions in the Strait of Hormuz left several vessels stranded.
Treasury Secretary Scott Bessent confirmed that the general licences covering Russian and Iranian oil would not be extended.
He explained that the waivers only applied to oil already loaded onto vessels before March 11, and that those supplies had now been exhausted. This decision marks the end of the Trump administration’s short-term effort to ease global energy prices, which had surged amid escalating conflict in the Middle East.
The waivers were initially designed as temporary measures to stabilise energy markets. They permitted limited transactions involving oil loaded before specific deadlines, ensuring that supplies already en route could reach global markets.
Following Iran’s chokehold on the Strait of Hormuz in March, the US issued a 30‑day licence allowing Russian crude loaded before 12 March to be delivered, with the waiver expiring on 11 April. A similar relaxation was granted for Iranian oil on 20 March, enabling around 140 million barrels to reach markets, with that waiver set to expire on 19 April.
India took advantage of these waivers to secure additional supplies. Reports indicate that Indian refiners placed orders for approximately 30 million barrels of Russian oil during this period. Major refiners such as Reliance had initially reduced purchases from Russian firms like Rosneft and Lukoil under US pressure earlier in the year, but quickly reversed course once the waivers were introduced.
The waivers also facilitated the arrival of at least two super-tankers carrying Iranian crude at Indian ports, marking the first such deliveries in nearly seven years. India has historically been a significant buyer of Iranian crude, importing both light and heavy grades due to their compatibility with Indian refineries and favourable commercial terms.
At its peak, Iranian crude accounted for 11.5 per cent of India’s total imports. However, imports ceased in May 2019 following tightened sanctions, with India turning instead to Middle Eastern, US and other suppliers.
Despite their intended purpose of easing energy prices, the waivers attracted sharp criticism in the United States, particularly from opposition Democrats. Senator Richard Blumenthal argued that the Russia waiver had effectively handed Moscow billions of dollars daily to fund its war machine, while also aiding Iran in targeting US troops.
Senate Majority Leader Chuck Schumer and other Democrats issued a joint statement condemning the policy, accusing the administration of flouting congressional notification requirements under the Countering America’s Adversaries Through Sanctions Act.
They further noted that Russia’s decision to cancel planned budget cuts demonstrated that the Kremlin was directly benefiting from the sanctions relief. The statement urged the Trump administration to reverse what they described as a dangerous policy, stressing the need to prevent Russia from reaping further financial gains and to avoid strengthening President Putin’s war machine.
Agencies
