US extends oil waiver
- The US extended a sanctions waiver allowing some countries to continue purchasing Russian oil after formal requests. - More than ten countries asked for the waiver, US officials said during the spring meetings. - The decision signals Washington is prioritizing energy market stability over strict sanctions enforcement amid tight global supplies ((moneycontrol.com))
The United States has extended a sanctions waiver that lets some countries keep buying Russian oil already loaded on tankers through May 16. (ofac.treasury.gov) The Treasury Department issued Russia-related General License 134B on April 17, replacing an earlier 30-day waiver that expired on April 11. The license covers Russian crude oil and petroleum products loaded on vessels as of April 17. (ofac.treasury.gov) Treasury Secretary Scott Bessent said on April 22 that officials extended the relief after requests from more than 10 countries during the International Monetary Fund and World Bank spring meetings. He said the countries seeking help were among the most vulnerable to oil shortages. (deccanherald.com) The waiver is narrower than a broad rollback of sanctions. It permits the sale, delivery or offloading of Russian-origin cargoes that were already on ships, rather than opening a general path for new unrestricted Russian oil trade. (ofac.treasury.gov, sanctionsnews.bakermckenzie.com) Washington had signaled two days earlier that it would not renew the waiver, then reversed course on April 17. Reuters and The Associated Press reported that the shift came as the administration tried to contain higher oil prices and supply disruptions tied to the Iran war and the closure of the Strait of Hormuz. (thehindu.com, apnews.com) India is one of the clearest beneficiaries. Reuters reported on April 21 that Russian oil sales to India were set to remain near record highs in April and May after the waiver was renewed. (usnews.com) Shipping data cited by Reuters showed Russian crude arrivals at Indian ports rising to 2.1 million barrels per day for April 20 to 27, up from 1.67 million barrels per day the previous week. India also expanded the number of Russian insurers recognized for marine cover at its ports to 11 from eight. (businesstoday.in) The extension also exposes a split in Washington’s sanctions message. Lawmakers and Ukraine’s government have argued that easing oil restrictions helps Moscow keep earning export revenue while Russia’s war in Ukraine continues. (msn.com, yahoo.com) Bessent defended the decision as a temporary response to shortages, not a reward for Moscow. For now, the policy leaves U.S. sanctions in place on paper while giving importers another month to keep Russian barrels moving. (straitstimes.com, ofac.treasury.gov)
