Besent: 30-day waiver for Indian refiners to buy Russian oil

Besent: 30-day waiver for Indian refiners to buy Russian oil

U.S. Treasury Secretary Scott Bessent has indicated that a 25% additional tariff on Indian oil imports, imposed due to New Delhi’s purchases of Russian crude, could be lifted if India continues reducing its reliance on Russian oil. Speaking at the World Economic Forum in Davos, Bessent described the decline in Indian refinery purchases of Russian crude as a "huge success" following the imposition of tariffs, suggesting a diplomatic path exists to remove the penalty if energy sourcing shifts persist.

Indian refiners, including state-owned entities like Indian Oil and Bharat Petroleum, have largely avoided Russian oil deliveries for March and April 2026, opting instead for crude from the Middle East, West Africa, and Latin America. December 2025 data showed Indian imports of Russian Urals crude fell to 929,000 barrels per day, the lowest since late 2022, compared to an average of 1.36 million bpd in 2024. This aligns with broader efforts to secure a U.S.-India trade deal, which includes tariff reductions and economic cooperation frameworks announced in February 2026.

While the U.S. Congress debates a proposed 500% tariff on countries buying Russian oil, India has emphasized its focus on affordable energy for its population. New Delhi has not officially announced a halt to Russian oil imports but has allowed market-driven diversification to mitigate geopolitical risks. Bessent also criticized European nations for purchasing refined products from Indian refineries using Russian crude, calling it an "act of irony and stupidity" as it indirectly funds Russia's war efforts.

Indian refiners may reassess Russian oil procurement if advised by the government, but current trends suggest sustained diversification amid evolving trade dynamics and sanctions pressures.