US Ends Oil Sanction Waiver: India’s Russian Oil Imports to be Hit

April 16, 2026 - The United States has decided not to renew the temporary sanctions waiver that allowed India and other countries to buy Russian and Iranian oil without penalties. US Treasury Secretary Scott Bessent has confirmed that the waiver will expire and not be extended. The waiver applied only to oil shipments already loaded before March 11, 2026, and that window has now closed.

Speaking to the media on Wednesday (April 15), Bessent said, “We will not be renewing the general licence on Russian oil, and we will not be renewing the general licence on Iranian oil. That was oil that was on the water prior to March 11. So all that has been used.”

While the Russian oil waiver expired on April 11, the one on Iranian oil will end on April 19.

The waiver was announced on March 12 as a short-term emergency measure to stabilise global oil markets following supply disruptions after Iran partially blocked the Strait of Hormuz during the conflict with US-Israel. Because of the limited oil flows through the waterway, crude prices had shot up amid shortages.

The 30-day waiver then announced by the US Treasury had allowed India to go back to buying cheaper Russian oil. As per reports, India had placed orders for around 30 million barrels of oil from Russia during the waiver period.

With India being a major beneficiary of this waiver, importing large volumes of discounted Russian oil, this US decision is may hit the country hard. With the sanctions now back in place, Indian refiners will have to cut back on Russian imports and look for alternative suppliers from the Middle East, US, etc. Oil costs could rise, affecting fuel prices and inflation.

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