MARKET STRUCTURE · INDIA
US Treasury authorises Russian crude deliveries to India
Change
OFAC issued a licence authorising delivery and sale of Russian-origin crude loaded on vessels as of March 5, 2026 to India through April 3, 2026.
Why it matters
The Treasury Department's Office of Foreign Assets Control authorised delivery and sale of crude oil and petroleum products of Russian Federation origin loaded on vessels as of March 5, 2026 to India. The authorisation explicitly covers transactions including cargoes aboard vessels blocked by various sanction regimes. The licence is effective immediately and authorises covered transactions through the end of the day on April 3, 2026. Senior US officials publicly defended the 30-day pause and urged redirecting tankers idling at sea to Indian refineries.
Implications
- • Banks and insurers can process payments and provide insurance for transactions covered by the licence during the authorisation period.
- • Shipowners and oil traders can redirect tankers already idling at sea to Indian ports and complete sales falling within the authorised window.
- • Cargoes loaded after March 5, 2026 are not covered by the authorisation and remain subject to existing US sanctions.
- • Maritime service providers can offer port, bunkering, and related services for covered vessels without US sanctions enforcement during the authorisation period.
Who is affected
- • Refinery operators in India
- • Oil traders and shipowners
- • Banks, insurers, and maritime service providers
- • Sanctions compliance teams at energy and financial firms
What to watch
- • Loaded-by cutoff: March 5, 2026
- • Authorisation expiry: end of day April 3, 2026
Source
Topics
World & Politics International Affairs Energy & Power Oil & Gas