U.S. Allows Temporary Sale of Stranded Russian Oil to India

On Thursday, the U.S. Treasury Department, through its Office of Foreign Assets Control, issued a temporary waiver to ease economic sanctions against Russia, permitting the sale of stranded Russian oil to India.

This authorization allows for the delivery of crude oil and petroleum products of Russian Federation origin loaded onto vessels by March 5, 2026, with transactions authorized until April 3, 2026. Treasury Secretary Scott Bessent stated that this waiver aims to keep oil flowing in the global market as a short-term measure, which will not provide significant financial benefits to the Russian government.

The transactions involve oil already stranded at sea following the sanctions imposed after Russia's invasion of Ukraine. Although India will cease purchasing Russian oil as part of a trade deal with the United States, this action represents a rare effort by the U.S. to exert pressure on Russia amid the ongoing conflict.

The sanctions have led to a scramble among major buyers of Russian oil to find alternative suppliers.