India Defies Expired U.S. Sanctions Waiver, Continues Russian Oil Imports

India will continue purchasing Russian crude oil regardless of U.S. sanctions waivers, officials confirmed on May 19, 2026, after a temporary U.S. sanctions waiver expired on May 16. Joint Secretary Sujata Sharma of the Ministry of Petroleum and Natural Gas stated that procurement decisions are driven by commercial viability, affordability, and national energy security, not U.S. regulatory frameworks. Indian shares slumped on May 18 following the waiver's lapse and drone attacks in Gulf countries, though officials maintain there is no crude shortage.

The geopolitical backdrop has intensified significantly. A U.S.-Israeli war against Iran and the closure of the Strait of Hormuz have disrupted Gulf oil supplies, halting vessel movements and pushing Brent crude prices to approximately $110.28 per barrel. India, the world's third-largest oil consumer, has increasingly turned to Russian crude to offset lost Iranian and Gulf volumes. Russian imports fluctuated across reports, starting at nearly 1.9 million barrels per day in May, then reaching nearly 2 million, and peaking at 2.3 million barrels per day in early May — a record level. This shift has allowed Russia to sell oil at a premium, increasing its profits.

Conflicting reports emerged regarding the waiver's status. While initial accounts indicated the Trump administration allowed the waiver to lapse without extension, a later report stated U.S. Treasury Secretary Scott Bessent issued a new 30-day general license on May 18 to stabilize markets and help energy-vulnerable nations access Russian oil stranded at sea. Indian refiners may also mitigate disruptions through supplies from the U.S., United Arab Emirates, Oman, and Iraq, as well as existing floating storage of over 7 million barrels.