U.S. extends Russian oil waiver
- The U.S. Treasury extended a sanctions waiver allowing purchases of Russian oil after requests from several countries. - Officials said more than ten countries asked for the waiver during discussions on the sidelines of the IMF‑World Bank spring meetings. - The move highlights how energy dependencies are forcing pragmatic policy adjustments among nations vulnerable to supply shocks (moneycontrol.com).
The United States extended a sanctions waiver that lets countries keep buying some Russian oil shipments for another 30 days. (ofac.treasury.gov) The Treasury Department’s Office of Foreign Assets Control issued General License 134B on April 17, covering Russian crude and petroleum products loaded onto vessels as of that date. The waiver runs through May 16 and replaced a prior 30-day license that expired on April 11. (ofac.treasury.gov; cnbc.com) Treasury Secretary Scott Bessent said on April 22 that finance officials from about 10 countries asked Washington to extend the relief during last week’s International Monetary Fund and World Bank meetings. A U.S. source told CNBC the requests came from partner countries on the sidelines of Group of 20, World Bank and IMF meetings in Washington. (straitstimes.com; cnbc.com) The waiver applies to oil already at sea, not a broad reopening of Russian energy trade. Treasury said the authorization excludes transactions involving Iran, Cuba and North Korea. (cnbc.com) Washington tied the move to a supply shock from the war with Iran and disruptions around the Strait of Hormuz, a shipping lane that carries roughly a fifth of global oil supply. Treasury said it wanted to ensure oil was available as negotiations with Iran continued. (economictimes.indiatimes.com; cnbc.com) The decision was also a reversal. Two days before the license was issued, Bessent said the administration would not renew the Russian oil waiver. (politico.com) India was part of the pressure campaign, according to CNBC, and President Donald Trump discussed oil this week with Prime Minister Narendra Modi. India has been one of the biggest buyers of Russian crude since 2022, making it one of the countries most exposed to any sudden cutoff. (cnbc.com; economictimes.indiatimes.com) The extension has drawn criticism from lawmakers and European officials who argue any sanctions relief helps Moscow keep earning from oil while the war in Ukraine continues. Bessent told senators that claims Iran gained more than $14 billion from similar relief were “a myth,” though he did not offer a replacement figure. (cnbc.com; straitstimes.com) For now, the policy leaves U.S. sanctions in place while carving out a one-month channel for cargoes already loaded. That keeps pressure on Russia on paper while giving importers a short window to avoid a fresh oil squeeze. (ofac.treasury.gov; politico.com)
