US approves temporary sale of stranded Russian oil to India

WASHINGTON

FILE - The Sheskharis oil terminal in Novorossiisk, in southern Russia, is seen on Thursday, Aug. 20, 2015. (Sergei Guneyev, Sputnik, Kremlin Pool Photo via AP, File)

The U.S. government on March 5 temporarily eased economic sanctions against Russia to allow Russian oil currently stranded at sea to be sold to India.

The Treasury Department's Office of Foreign Assets Control said the transactions, including from vessels blocked by various sanctions regimes, are authorized through the end of the day on April 3, 2026.

Treasury Secretary Scott Bessent said the waiver was issued "To enable oil to keep flowing into the global market."

"This deliberately short-term measure will not provide significant financial benefit to the Russian government as it only authorizes transactions involving oil already stranded at sea," he posted on X.

The sale to India will "alleviate pressure caused by Iran's attempt to take global energy hostage," he added, even though India has said it will stop purchasing Russian oil as part of a trade deal with the United States.

Menwhile, U.S. President Donald Trump on March 5  said his government would soon take action to "reduce pressure on oil," after prices spiked due to the U.S.-Israeli war on Iran.

"Further action to reduce pressure on oil is imminent and the oil seems to have pretty much stabilized. We had it very low but I had to take this little detour if it's ok with everybody?" he said at a White House event, without specifying what the action would be.

He referenced having earlier taken "decisive action" by "offering political risk insurance for tankers transiting into the Gulf."