US Treasury Secretary Scott Bessent has announced that Washington will not renew sanctions waivers that permitted countries, including India, to purchase Russian and Iranian energy.
Speaking at a press conference on Wednesday, Bessent said the general licenses for both Russian and Iranian oil would not be extended, reports The Hindustan Times.
He clarified that the licenses applied to oil that was “on the water” prior to 11 March and that those supplies have now been utilised.
The US Treasury had initially announced a temporary 30-day waiver on 12 March specifically to allow Indian refiners to purchase Russian energy that had already been loaded onto tankers.
Washington justified the measure as a necessary step to stabilise global energy prices, which had surged above $100 a barrel following the outbreak of a conflict between the US and Iran in late February.
While the waiver for Russian oil expired on 11 April, the separate license for Iranian oil is scheduled to expire on 19 April.
India was a primary beneficiary of these waivers, with reports indicating that the country placed orders for almost 30 million barrels of Russian oil after the measures were enacted.
Before the waiver, Indian refiners such as Reliance had begun winding down purchases from Russian energy majors, including Rosneft and Lukoil, to comply with US sanctions.
The decision to allow these waivers to lapse follows significant domestic political pressure in the United States. Members of the opposition Democratic party, including Senate Minority Leader Chuck Schumer and Senator Richard Blumenthal, heavily criticised the policy.
Blumenthal argued that the relief handed Russia billions of dollars to fuel its “war machine” and aided Iran with intelligence.
In a joint statement, Schumer and other Democratic senators accused the Trump administration of flouting notification requirements to Congress under the Countering America’s Adversaries Through Sanctions Act (CAATSA).
They further contended that Russia’s decision to cancel planned budget cuts proved the Kremlin was directly benefiting from the sanction’s relief.
Despite reports that officials from India and other Asian nations pushed for an extension, the US Treasury maintained that the waiver was a “short-term” measure intended to prevent significant financial benefits from flowing to the Russian government.
