Two Democratic lawmakers are calling for the Treasury Department to revoke a waiver allowing India to buy Russian oil – saying the move provides a “tangible advantage to the adversary” amid reports that the Kremlin is helping Iran.
In a letter sent Monday to Treasury Secretary Scott Bessent, Rep. Sam Liccardo (D-Calif.) and Sen. Ruben Gallego (D-Ariz.) criticized the Trump administration last week for issuing a 30-day executive order that allowed India to temporarily resume buying Russian oil.
“Your recent decision to provide a 30-day waiver is dangerous, self-defeating, and indefensible,” Liccardo and Gallego wrote in the letter, according to CNBC. “This abandonment is a mysterious act of enemy advantage.”
The temporary withdrawal is a sharp reversal of the US government’s previous stance, which saw it briefly slap a 25% tariff on India as punishment for buying energy from Moscow – but officials argued that the exemption was necessary as the Strait of Hormuz crisis disrupts global oil flows.
Iran cut off access to a key sea route, which transports 20% of the world’s oil – sending oil prices soaring above $100 a barrel and national average gasoline prices to $3.48 a liter on Monday, according to AAA.
Bessent said the temporary withdrawal would not provide “significant” benefits to Russia, but would instead help stabilize oil prices as Tehran closes the vital waterway.
“This deliberate short-term measure will not provide much financial benefit to the Russian government as it only authorizes transactions involving oil that is already depressed at sea,” he said in a post on X last week.
The Russian government generates most of its energy revenue from taxes placed on oil when it is first extracted from the ground, not when it is delivered to consumers, a source familiar with the situation told The Post.
The Treasury Department, Liccardo and Gallego did not immediately respond to The Post’s requests for comment.
After the US issued a temporary withdrawal, Iran’s foreign minister confirmed that Russia was helping Tehran “in many different ways” in its war with the US and Israel – just days after speculation that Moscow was passing intelligence on US military locations.
Gallego and Liccardo criticized the temporary lifting of the sanctions, saying it rewards Russia financially as it helps Iran target US forces throughout the Middle East.
“Instead of creating contingency plans that would keep India and its allies supplied with alternative sources, the administration’s deplorable approach has allowed Russia and other adversaries to profit from oil reserves blocked by sanctions, supporting Russia’s efforts to harm the US military and thwart American intelligence,” the lawmakers wrote in the letter.
“By issuing this decision, you have signaled that the United States will reward attacks on our troops, not deter them.”
The increase in oil prices — which briefly rose to $120 early Monday — comes less than eight months before the 2026 midterms and could threaten GOP efforts to address affordability concerns among Americans.
Trump promised to lower inflation during his campaign, including gas pump prices, but his approval ratings for the economy have soared as inflation and cost integration and the Iran conflict fueled economic concerns.
Liccardo and Gallego — who are members of the House Financial Services Committee and the Senate Banking Committee, respectively — argue a war on Iran would worsen the impoverishment crisis.
“Prolonged conflict with Iran and broader military operations throughout the Middle East will only deepen the energy cost crisis, burden Americans with paying more at the pump, and exacerbate the impoverishment problem facing many Americans,” they wrote.
Energy Secretary Chris Wright defended the temporary exemption to Russian oil imports, saying it could temporarily ease price pressure and divert oil exports to China.
“We are not helping Russia by accelerating the sale of its oil to stop the rise in oil prices and to keep the refineries of Europe and Asia in oil,” Wright told CBS’ “Face the Nation” on Sunday.
“We’re just doing smart things to get us through the short term that will bring an era of very low energy prices.”
On reports that Russia has been sharing intelligence with Iran, Wright said the government doesn’t know “if that’s true or not,” though he added that “Russia is an expert at causing trouble around the world.”
Although economists have warned that energy shocks often increase consumer prices during protracted disputes, Wright promised that gasoline prices will drop below $3 a gallon “and before too long” during an appearance on CNN’s “State of the Union” on Sunday.
