The United States has decided not to extend the sanctions waivers that allowed countries like India to purchase oil from Russia and Iran. US Treasury Secretary Scott Bessent announced the move on Wednesday, making it clear that Washington is tightening its stance on energy trade linked to both nations. India had been one of the main beneficiaries of these waivers, which had earlier allowed limited transactions despite ongoing sanctions.

Bessent confirmed the decision during a press conference and stated, “We will not be renewing the general license on Russian oil and we will not be renewing the general license on Iranian oil. That was oil that was on the water prior to March 11. So, all that has been used.” His remarks indicate that the temporary relief provided earlier has now fully run its course and no further flexibility will be granted.

The waiver system had initially been introduced as a short-term solution. On March 12, the US Treasury had issued a 30-day waiver that allowed Indian refiners to purchase Russian oil that had already been loaded onto tankers. This move was aimed at avoiding sudden disruptions in global oil supply. It ensured that shipments already in transit could still be completed without violating sanctions.

Explaining the rationale behind the decision at the time, Bessent had said, “To enable oil to keep flowing into the global market, the Treasury Department is issuing a temporary 30-day waiver to allow Indian refiners to purchase Russian oil. This deliberately short-term measure will not provide significant financial benefit to the Russian government as it only authorizes transactions involving oil already stranded at sea.” The US government had stressed that the authorisation of a waiver was strictly limited and not meant to ease long-term pressure on Russia.

The timing of the waiver was linked to rising global energy concerns. Crude oil prices had crossed $100 per barrel following the escalation of the US-Iran conflict in late February. The temporary relief was intended to stabilise the market and prevent further price spikes. Soon after, Washington also introduced a similar 30-day waiver for Iranian oil purchases.

While the Russian oil waiver expired on April 11, the Iranian oil waiver is set to end on April 19. With no extension planned, countries that relied on these provisions will now have to fully comply with US sanctions. This marks a shift towards stricter enforcement of economic measures against both Moscow and Tehran.

Despite this decision, there had been strong efforts from several Asian countries, including India, to push for an extension of the waivers. Reports suggested that officials from these nations had engaged with Washington to request more time. However, these appeals did not lead to any change in policy.

India had significantly benefited from the temporary relaxation. According to reports citing government officials, the country placed orders for around 30 million barrels of Russian oil during the waiver period. This helped Indian refiners maintain supply while managing costs in a volatile global market.

Before the waiver was introduced, major Indian refiners such as Reliance had reduced their purchases from Russian companies like Rosneft and Lukoil. This was due to direct US sanctions on these energy firms. The waiver allowed a brief return to such transactions, but only under tightly controlled conditions.

The policy, however, faced strong criticism within the United States. Several leaders, especially from the Democratic Party, argued that the waivers weakened the impact of sanctions. They claimed that even limited purchases could provide financial support to Russia and Iran.

US Senator Richard Blumenthal strongly opposed the move and wrote, “No way the Russia sanctions waiver should be extended. Trump’s waiver has handed Russia an extra $150 billion a day to fuel its murderous war machine killing & kidnapping Ukrainian kids—while it aids Iran with intelligence to target our troops,” in a post on X on April 10. His statement reflected growing concern among lawmakers about the broader consequences of the waiver policy.

Other Democratic leaders also raised objections. Three senators, including Senate Minority Leader Chuck Schumer, issued a joint statement criticising the administration’s approach. They argued that the waiver undermined existing sanctions laws and could embolden Russia.

“In addition to flouting notification requirements to Congress under the Countering America’s Adversaries Through Sanctions Act before relaxing sanctions on the Kremlin, Secretary Bessent characterised the license as a temporary and ‘short-term’ measure that would not provide significant financial benefit to the Russian government," the senators said in a joint statement.

They further added, "But Russia’s decision to cancel its planned budget cuts demonstrates that, as we warned, Russia is directly benefiting from the administration’s sanctions relief. It is incumbent on the Trump Administration to reverse this dangerous policy, ensure that Russia does not reap any additional benefit and prevent the United States from further boosting Putin’s war machine.”

With the waivers now ending, the US is signalling a return to stricter enforcement of its sanctions regime. This decision is likely to impact global oil flows and force countries like India to reassess their sourcing strategies. At the same time, it reflects Washington’s intent to maintain economic pressure on Russia and Iran without compromise.