Indian Refiners Gain Access to Russian Oil with US Waiver

Indian refiners are increasingly acquiring Russian oil floating in Asian waters, following a US waiver that allows the purchase of stranded cargoes at sea. The decision comes amid a wider conflict in West Asia that has disrupted supplies from the Middle East, compelling Indian companies to source oil from Russia to maintain domestic fuel availability.

The US has provided a 30-day waiver aimed at stabilizing global supply flows and mitigating further price hikes. Although Indian companies have secured around 20 million barrels from non-sanctioned entities, they are currently considering legal advice to determine if the exemption extends to sanctioned entities.

The waiver has allowed refiners like Hindustan Petroleum Corporation Ltd and Mangalore Refinery and Petrochemicals Ltd to re-enter the Russian oil market, as they manage risks stemming from Middle Eastern supply disruptions. Despite potential competition from Chinese buyers, the waiver offers some relief by boosting access to Russian crude, essential for India’s energy security.