U.S. Extends Russian Oil Waiver
- The U.S. granted an extension of a sanctions waiver allowing purchases of Russian oil after requests from more than ten countries. (moneycontrol.com) - Washington's concession underlined that energy insecurity can make sanctions policy negotiable when enough governments push back. (moneycontrol.com) - That flexibility could alter short‑term oil flows and market sentiment by tying sanctions enforcement to global energy needs. (moneycontrol.com)
Washington has extended a U.S. sanctions waiver that lets countries keep buying some Russian oil already loaded on ships, after appeals from more than 10 energy-vulnerable governments. (usnews.com) The Office of Foreign Assets Control issued General License 134B on April 17, authorizing sales, delivery and offloading of Russian crude oil and petroleum products loaded on vessels as of that date through May 16. The new license replaced a 30-day waiver that expired on April 11. (ofac.treasury.gov) Treasury Secretary Scott Bessent said on April 22 that representatives of more than 10 of the “most vulnerable and poorest” countries had asked Washington to keep the relief in place. Reuters reported the pressure came during Group of 20, World Bank and International Monetary Fund meetings in Washington. (deccanherald.com) (cnbc.com) The waiver is narrow: it covers Russian-origin oil already at sea, not a broad reopening of Russian energy trade. Treasury’s April 17 license also excludes transactions involving Iran, Cuba and North Korea. (cnbc.com) (ofac.treasury.gov) The policy shift came after a public reversal inside the administration. On April 15, Bessent said Washington would not renew the Russian and Iranian oil waivers; two days later, Treasury renewed the Russia waiver anyway. (cnbc.com) (apnews.com) U.S. officials tied the extension to the energy shock from the U.S.-Israeli war with Iran, which Reuters reported had entered its eighth week by April 18 and had damaged more than 80 oil and gas facilities in the Middle East. Treasury said it wanted to ensure oil remained available as Iran negotiations continued. (usnews.com) (cnbc.com) Oil prices had surged during the Iran conflict, then fell 9% on April 17 to about $90 a barrel after Iran temporarily reopened the Strait of Hormuz, a key shipping route for Gulf crude. Reuters reported that partner countries in Asia had pressed Washington to let alternative supplies keep moving. (usnews.com) (cnbc.com) India sat near the center of the debate because it has become a major buyer of discounted Russian crude since the Ukraine war reshaped oil flows. Reuters reported that President Donald Trump also discussed oil in a call that week with Indian Prime Minister Narendra Modi. (cnbc.com) (msn.com) The extension has drawn criticism from lawmakers and European officials who argue that easing enforcement helps Moscow keep earning from oil while Russia’s war in Ukraine continues. Treasury and White House officials have answered that the license is temporary and aimed at preventing a wider supply crunch. (cnbc.com) (apnews.com) For now, the May 16 deadline leaves Washington with the same choice it faced in April: tighten sanctions on Russian barrels in transit, or keep making room for them when oil markets seize up. (ofac.treasury.gov) (usnews.com)
