US Waiver Sparks Fresh Russian Oil Purchases by Indian Refiners

Indian refiners have acquired roughly 30 million barrels of Russian crude after the United States granted a temporary waiver allowing such transactions, as per news reports. The purchases come as India grapples with a sudden drop in oil supplies from the Middle East.

The waiver, issued late last week, has prompted Indian refiners to move quickly to secure available Russian cargoes, particularly those already loaded but yet to be committed to buyers.

India had been gradually reducing its reliance on Russian oil over the past year under pressure from Washington. To compensate, refiners increased imports from major Middle Eastern producers such as Saudi Arabia and Iraq. However, the escalating conflict in the region has severely disrupted supply routes.

Indian Refiners Snap Up Available Cargoes

Following the US approval, major refiners, including Indian Oil Corp. and Reliance Industries Ltd. rushed to purchase available Russian crude in the spot market as per news reports. 

State-run Indian Oil Corp. is believed to have purchased around 10 million barrels of Russian crude, while Reliance Industries secured at least a similar volume. The US waiver applies to Russian crude and petroleum products loaded onto vessels before March 5, provided the cargo is delivered to India and purchased by Indian companies.

The renewed demand has already begun reshaping tanker movements. Several ships that were previously heading away from the Indian subcontinent have changed course. Among them, the tankers Maylo and Sarah recently redirected toward India after initially indicating Singapore as their destination.

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Russian Oil Still Key for India

India historically imported limited volumes of Russian crude. However, purchases surged after Russia’s invasion of Ukraine in early 2022, as discounted barrels became widely available. Imports peaked at more than 2 million barrels per day in mid-2024 but declined to an average of 1.06 million barrels per day in February.

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