The US has extended by another month its sanctions waiver on the purchase of Russian crude oil already loaded on tankers. The move is aimed at allowing more oil to reach the international market and exerting downward pressure on elevated oil prices due to the effective closure of the Strait of Hormuz, through which about a fifth of global crude oil used to pass.

Washington had earlier allowed the sanctions waiver on importing Russian oil already at sea to expire on May 16, with no clarity on whether the waiver would be extended. However, late Monday, US Treasury Secretary Scott Bessent announced that it was being extended by another month. This is the second extension of the waiver, which was first issued in March as the West Asia war squeezed global oil supply.

Notably, earlier on Monday, India—a top destination for Russian crude—had said that it had been buying Moscow’s crude irrespective of the US waiver, and would continue to import it with commercial viability and energy security being the primary considerations. Nevertheless, the waiver does make it easier for Indian refiners to continue with their heavy imports of Russian oil.

Will help stabilise the physical crude market: US

“@USTreasury is issuing a temporary 30-day general license to provide the most vulnerable nations with the ability to temporarily access Russian oil currently stranded at sea. This extension will provide additional flexibility, and we will work with these nations to provide specific licenses as needed. This general license will help stabilize the physical crude market and ensure oil reaches the most energy-vulnerable countries,” Bessent posted on the social media platform X.

“It will also help reroute existing supply to countries most in need by reducing China’s ability to stockpile discounted oil,” Bessent added.

According to a General License issued by the Office of Foreign Assets Control (OFAC) of the US Department of the Treasury on April 17, Russian oil and petroleum products loaded on tankers, including sanctioned vessels, on or before 12:01 eastern daylight time (9:31 am India time) on April 17 could be purchased and received by most countries till May 16. This waiver has now been extended till June 17 through a revised General License by OFAC.

In April, too, the waiver had expired, but the US then extended it after a few days, that too after initially announcing that it won’t be renewed. The initial waiver—issued in March—had expired on April 11, but was later renewed on April 17. According to industry experts, the decision to extend the waiver till mid-May likely came after pressure from countries buying Russian crude to partly offset the loss of Gulf barrels due to the Strait of Hormuz closure. It could have been the case this time around as well.

Experts see such waivers as part of the Donald Trump administration’s effort to prevent a sustained spike in international oil prices—and the consequent rise in domestic fuel prices in the US—given the midterm elections later this year.

But the waiver has attracted criticism from various sections in the US. Critics argue that it is leading to a windfall for Moscow, which would fund its war effort in Ukraine. Such arguments were also made against the similar waiver for the purchase of Iranian oil and fuels, with whom the US was locked in battle in West Asia. While Washington has extended the Russian waiver twice, it didn’t renew the Iranian waiver.

Keeps India’s Russian oil imports uncomplicated

“Regarding the American waiver on Russia, I would like to emphasise that we have been purchasing from Russia earlier, before waiver also, during waiver also, and now also. So, it is basically the commercial sense, which should be there for the OMCs (oil marketing companies) to purchase (Russian oil),” Petroleum Ministry Joint Secretary Sujata Sharma said Monday afternoon.

While government officials consistently maintained that India didn’t require a US waiver to buy Russian oil, industry experts said that the waiver actually helped. It enabled Indian refiners to be able to take deliveries of Russian oil even on tankers sanctioned or blocked by the US, and they could deal directly with sanctioned Russian companies like Rosneft and Lukoil. Moreover, it temporarily removed the friction between Washington and New Delhi over the latter’s hefty purchases of Moscow’s crude.

Had the waiver not been extended, some adjustments and downward pressure on India’s oil imports from Russia were likely. Without the waiver, Indian refiners wouldn’t have been able to take deliveries of Russian crude on sanctioned tankers or deal with Russian oil suppliers sanctioned by Washington, as that would have exposed them to the risk of attracting secondary sanctions from the US.

“India’s crude import mix has shifted materially since March 2026 as Strait of Hormuz disruptions tightened Middle Eastern flows and increased freight and logistical risks across Asia. Indian refiners have responded by increasing purchases from Russia, West Africa, Venezuela, and broader Atlantic Basin suppliers to offset weaker Gulf availability. However, replacement barrels have not been sufficient to fully compensate for the decline in Middle Eastern flows, resulting in India’s overall crude imports falling by roughly 550 kbd during the period,” Sumit Ritolia, modelling and refining manager at Kpler, told The Indian Express.

Although India was buying significant volumes of Russian crude even before the West Asia war began, the quantity had reduced notably in the months that preceded the war, evidently due to the US imposing sanctions on Rosneft and Lukoil, and amid India-US trade negotiations. Washington made a meaningful reduction in New Delhi’s Russian oil imports a prerequisite for scrapping its 25% additional penal tariff.

“Despite the diversification, Russian crude continues to anchor India’s import slate due to pricing advantages, relatively stable non-SoH logistics, and limited large-scale alternatives in an already tight global crude market. Venezuelan barrels have also re-emerged as an important swing supply, particularly for complex refiners seeking heavier replacement grades,” Ritolia said.

“Looking ahead, India’s crude mix is expected to remain broadly similar to current patterns, with refiners continuing to priorities supply security, refinery optimization and economics,” he added.

Around 2.5–2.7 million barrels per day (bpd) of India’s crude imports—accounting for around half of the country’s total oil imports—have transited the Strait of Hormuz in recent months; the longer-term average is around 40%. Most of that supply is effectively offline as vessel movements through the critical maritime chokepoint have reduced to a trickle due to the West Asia war.

Higher oil imports from Moscow—New Delhi’s largest source of crude—have partially offset the loss of West Asian barrels from countries like Iraq and Kuwait.

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In February, Indian refiners had imported just over 1 million bpd of Russian crude, almost half of the 2025 peak of over 2 million bpd. Even with the significant reduction in volumes, Russia was India’s largest source of crude in February, accounting for about a fifth of its total oil imports.

Then, with the war in West Asia raging and the sanctions waiver in place, oil imports from Russia nearly doubled to 2 million bpd in March, accounting for almost 45% of India’s total oil imports for the month, while imports from West Asia crashed, according to tanker data from commodity market analytics firm Kpler.

In April, imports of Russian crude moderated to 1.6 million bpd, which was mainly due to the Nayara Energy refinery—a heavy consumer of Russian crude—taking a maintenance shutdown. Imports of Russian crude so far in May are pegged at almost 2 million bpd.