Indian oil refiners are seeking legal guidance on how to purchase sanctioned Russian crude after the United States granted India a temporary waiver allowing it to buy cargoes currently stranded at sea, two government sources said on Friday.
Washington on Thursday approved a 30-day sanctions waiver permitting Indian refiners to purchase Russian oil that had already been loaded onto vessels as of March 5. The authorization related to Russia’s oil exports to India will remain valid until April 4.
According to a Reuters report on Thursday, Indian state-owned refiners have already secured at least 20 million barrels of Russian crude currently stored on ships in international waters. The move aims to help address supply pressures triggered by the ongoing Middle East crisis.
India, the world’s third-largest oil importer, receives around 40% of its oil imports from the Middle East, much of which passes through the Strait of Hormuz.
“So far, refiners have only purchased oil that is not under sanctions,” one government source said, adding that companies want to avoid potential complications such as payment difficulties if the cargoes are linked to sanctioned entities or vessels.
Following Russia’s invasion of Ukraine in 2022, India became the largest buyer of Russian seaborne crude. However, in January Indian refiners began scaling back purchases amid pressure from Washington.
Reducing Russian oil imports helped New Delhi avoid potential U.S. tariffs of 25% and secure an interim trade agreement with the United States.
At the same time, India has faced energy supply challenges, including a halt in liquefied natural gas production in Qatar and disruptions to supplies from Abu Dhabi National Oil Company.
These disruptions have forced India to cut natural gas allocations to several industries, including fertilizer manufacturers, refineries and petrochemical plants.
The government has also asked refiners to increase production of liquefied petroleum gas (LPG) to prevent shortages of cooking fuel across the country.
According to one source, India is prepared to take further steps if necessary to ensure adequate domestic fuel supplies, including gasoline and gasoil.