U.S. sanctions on Russian oil will not affect India – media reports
18 May 13:14
Disruptions in oil supplies will not have a significant impact on Indian refineries after the U.S. declined to extend the sanctions exemption that allowed the purchase of Russian oil. This is reported by Bloomberg, according to "Komersant Ukrainian".
This forecast is based not on India having reduced demand and sourcing oil from the US and the Middle East, the report states.
“According to traders familiar with the matter, China’s virtual absence from the market played a key role in maintaining wholesale supplies. Domestic demand in India has also declined due to maintenance, leading to a reduction in total purchases by private refineries,” the agency writes.
According to traders, offers are coming in for oil shipments from the U.S., the United Arab Emirates, Oman, and Iraq—although total supply volumes from the Middle East remain only a fraction of what they were before the war began.
Bloomberg reports that discounted Russian oil has become the primary source of supply “for the world’s third-largest oil importer since 2022, when the invasion of Ukraine triggered a series of sanctions and cut the producer off from traditional markets.”
After a brief decline last year under pressure from Washington, Indian refiners are once again actively buying up Russian oil.
“In May, according to Kpler, supplies are expected to reach about 1.9 million barrels per day, close to peak levels—though this still includes the ‘period with U.S. authorization, which was allowed to expire over the weekend,’” the publication writes.
Maintenance at Reliance Industries Ltd. and Nayara Energy Ltd. has contributed to an increase in Russian crude oil volumes in storage tankers—currently exceeding 7 million barrels worldwide, which is five times more than a month ago, according to vessel tracking data compiled by Bloomberg.
For Indian refiners, this means more options, at least in the short term, the agency notes.
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U.S. Sanctions on Russian Oil
After the May 16 expiration of the sanctions exemption allowing the purchase of Russian oil, the U.S. did not issue an executive order extending the authorization.
This is evident from the website of the Office of Foreign Assets Control (OFAC) of the U.S. Department of the Treasury.
The last order allowing the supply and sale of crude oil and petroleum products originating from Russia was issued on April 17, 2026. However, it only permitted the sale of oil loaded onto vessels as of April 17, 2026.
These exemptions expired on May 16, and no updated orders were posted on the U.S. Department of the Treasury’s website.
On Friday, May 15, it was reported that India had asked the U.S. to extend the exemption from sanctions on Russian oil, as the war in Iran continues to disrupt energy supplies.
In May 2026, Russian oil shipments to India reached an unprecedented 2.3 million barrels per day. By the end of the month, this figure could still stand at a significant 1.9 million barrels per day.
As a reminder, on March 13, the U.S. suspended sanctions against Russian oil that had already been loaded onto tankers to stabilize global energy markets amid the war in the Middle East. In April, the U.S. extended this exemption until May 16.
India has asked the U.S. to extend the exemption from sanctions on Russian oil, as the war in the Middle East, which has been ongoing for nearly 11 weeks, is disrupting energy supplies.
The exemption allowing imports of Russian oil expired on May 16.
With no end in sight to the war in Iran, officials in New Delhi have warned Washington that securing the country’s energy supply remains a priority for India, and that a prolonged crisis could have even more serious consequences.
Imports of Russian oil to India are currently at record levels, as refineries are operating at full capacity before the current exemption expires.
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