What happened?
When the Strait of Hormuz was effectively closed after Iran entered the war in March 2026, India found itself facing a potential fuel supply crisis. With over half its crude imports normally passing through that waterway, New Delhi needed an emergency solution fast. The answer came on March 6, 2026, when the US Treasury issued India a temporary 30-day waiver authorising the purchase of stranded Russian oil cargoes.
Key Points
US Treasury issued India a 30-day emergency waiver on March 6, 2026
Waiver allowed India to buy stranded Russian oil cargoes to prevent fuel collapse
India had only 25 days of strategic crude oil reserves at the time
Russian oil has been a major source for India since Ukraine war sanctions began in 2022
India faces balancing act — strategic relationship with US vs energy security needs
Waiver reflects recognition that sanctioning India for buying Russian oil would destabilise global markets
Background
India's complex relationship with Russian oil goes back to 2022. When Western nations sanctioned Russia's energy exports following the invasion of Ukraine, India saw an opportunity — Russian crude was available at a discount. India quietly became one of Russia's largest oil customers, buying at below-market prices.
When the Iran war began and the Strait of Hormuz closed, Russian oil — flowing through different routes not affected by the Hormuz closure — became even more valuable to India. The US, recognising it could not afford India's economy to destabilise during an already volatile global situation, issued the waiver.
Main Details
The waiver specifically authorised India to purchase "stranded" Russian oil cargoes — tankers already at sea carrying Russian crude that had nowhere to go because regular buyers were avoiding them due to sanctions uncertainty. The 30-day waiver expired in early April 2026. There are reports, though unconfirmed officially, that it was extended or replaced with a longer-term arrangement.
Reactions
India's opposition criticised the government for what they called a lack of clarity on energy security planning. The government responded that its energy diversification policies had actually helped India weather the shock better than many comparable economies.
Impact Analysis
For Indian consumers, the Russian oil waiver helped stabilise fuel prices in the short term. Without this alternative supply, the fuel hikes India has experienced in May 2026 would likely have been much larger.
What Happens Next
India will likely continue navigating its energy sourcing pragmatically — buying from wherever supplies are available at the best price, while maintaining enough diplomatic cover to avoid formal sanctions.
FAQ
Q: What was the US waiver given to India?
A: A 30-day emergency authorisation to purchase stranded Russian oil cargoes to prevent a fuel supply crisis after the Strait of Hormuz closure.
Q: Is India under sanctions for buying Russian oil?
A: India has not been formally sanctioned. The US has been diplomatically cautious given India's strategic importance.
Q: How much Russian oil does India buy?
A: India became one of Russia's largest oil customers after 2022, though exact volumes are not always publicly disclosed.
Q: What happens when the waiver expires?
A: India has been discreet about the arrangements beyond the initial waiver. The situation is likely managed through diplomatic channels.
Q: What is India's long-term energy plan?
A: India aims to significantly expand renewable energy to reduce oil import dependence over the next decade.