India’s top bank remains cautious about paying for Russian oil despite US waiver
Illustrative photo: India is wary of dealing with Russian oil (Getty Images)
The State Bank of India (SBI) is refusing to process transactions for Russian oil even after the country received a temporary import waiver from the US government, Bloomberg reports.
India’s largest lender is unsure how long the temporary US waiver on Russian oil imports will last. The bank does not rule out potential consequences, as it holds a credit portfolio in global markets. It is also concerned about reputational risks.
Sources told the outlet that the temporary easing of US sanctions has done little to restore financial channels supporting India’s purchase of Russian oil.
SBI is exercising caution partly to protect its share in the US business (26% of its international credit portfolio) amid rising geopolitical tensions.
The agency notes that some Indian banks were willing to consider financing purchases of Russian oil at the end of 2025. However, such a step was conditional on not being blacklisted and staying within the limits of sanctions.
India’s refusal of Russian energy
The US Department of the Treasury issued India a temporary 30-day waiver allowing the purchase of Russian oil currently in port or at sea.
Previously, the US insisted that New Delhi stop buying Russian oil, offering US oil for the Indian market instead.
Later, in February 2026, the US and India signed a trade deal that included India’s withdrawal from a significant portion of Russian energy imports. The agreement also included mutual tariff reductions and other measures.
Over time, New Delhi found alternative markets for oil purchases outside of Russia — aside from the US, these were Middle Eastern countries — but current supplies from these sources have become impossible due to the conflict in Iran.
