India will continue purchasing Russian crude oil irrespective of US sanctions or waivers, a senior Petroleum Ministry official confirmed on Monday, 18 May, citing commercial viability and the country's energy security priorities. The statement comes days after a temporary US sanctions waiver on Russian seaborne crude lapsed on 16 May — the second time the Trump administration has allowed such relief to expire without announcing an extension.

What the Government Said

Joint Secretary Sujata Sharma of the Petroleum Ministry told reporters at a media briefing that India's crude sourcing decisions have never been contingent on American policy relief. 'Regarding the American waiver on Russia, I would like to emphasise that we have been purchasing oil from Russia earlier... before waiver also, during waiver also, and now also,' she said. Sharma added that commercial logic, not geopolitical signalling, drives India's import decisions. 'It is basically the commercial sense which should be there for us to purchase,' she noted, stressing that crude supply availability remains adequate and that sufficient volumes are locked in through long-term arrangements.

The Waiver That Lapsed

The general licence permitting transactions linked to Russian seaborne crude was first issued by the US Treasury Department in mid-March and extended once in April. It was designed to ease pressure on global energy markets and temper soaring crude prices amid the ongoing Iran war. Its expiry on 16 May without a fresh extension marks the second such lapse under the current US administration, leaving Indian refiners and traders navigating an uncertain compliance landscape.

Scale of India's Russian Oil Purchases

India, the world's third-largest oil importer, sharply ramped up purchases of Russian crude after 2022 to capitalise on steep price discounts, helping domestic refiners manage elevated global energy costs. Russian oil imports into India are expected to average close to record levels at 1.9 million barrels per day in May 2025, according to data from Kpler — figures that include shipments covered under the now-expired waiver. Notably, India's large-volume purchases have also reportedly helped cool global oil prices by easing aggregate demand pressure, even as benchmark Brent crude has crossed $100 per barrel.

Sanctions Pressure and Market Adjustments

In recent months, the US sanctioned several Russian entities, including major crude suppliers Rosneft and Lukoil, as well as associated vessels and financial channels. This triggered a brief moderation in Indian purchases last year, but the subsequent waivers prompted Indian refiners to step purchases back up. Analysts now say India is unlikely to structurally shift away from Russian crude in the near term. More documentation requirements and tighter cargo screening are anticipated rather than any fundamental change in sourcing strategy.

What Happens Next

With the waiver now gone and no clarity on a fresh extension, Indian refiners will need to navigate tighter compliance checks on payments, shipping, and insurance. However, given the government's unambiguous stance on energy security and commercial pragmatism, a significant reduction in Russian crude volumes appears unlikely in the immediate term. The situation will be closely watched by global energy markets, particularly as Brent trades above $100 per barrel.