The US is not extending its waiver on sanctions, which allowed nations, including India, to buy Russian and Iranian crude oil, Treasury Secretaryย Scott Bessent has announced at the White House. India was a major beneficiary of the sanctions waivers, a move that drew sharp criticism from US politicians who argued it eased financial pressure on Moscow and Tehran.
“We will not be renewing the general license on Russian oil, and we will not be renewing the general license on Iranian oil. That was oil that was on the water prior to March 11. So all that has been used,โ said Bessent at a press conference.
What was the 30-day waiver?
On March 12, the US Treasury announced a temporary 30 day waiver allowing Indian refiners to purchase Russian energy that had already been loaded onto tankers.
“To enable oil to keep flowing into the global market, the Treasury Department is issuing a temporary 30 day waiver to allow Indian refiners to purchase Russian oil. This deliberately short term measure will not provide significant financial benefit to the Russian government as it only authorizes transactions involving oil already stranded at sea,โ said Bessent in a statement announcing the waiver.
Washington defended the waiver as necessary to stabilise global energy prices, particularly crude oil, which had surged above $100 a barrel following the outbreak of the US Iran conflict in late February.
The US later introduced another 30-day license permitting countries to purchase Iranian oil. While the Russian oil waiver expired on April 11, the Iranian oil waiver is set to expire on April 19.
Push for extension of waivers
The US Treasuryโs decision came despite multiple reports that officials from Asian countries, including India, had urged Washington to extend the sanctions waivers.
India emerged as a key beneficiary of the policy. According to reports citing government officials, the country placed orders for about 30 million barrels of Russian oil after the waiver came into effect.
Indian refiners such as Reliance had earlier reduced purchases from Russian suppliers like Rosneft and Lukoil following US sanctions on these energy companies.
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