US extends Russian oil sanctions waiver for 30 more days
The US Department of the Treasury has extended a temporary licence that allows certain countries to purchase Russian oil already at sea for another month.
Source: US Treasury Secretary Scott Bessent on X (Twitter), as reported by European Pravda
Details: Bessent said the temporary 30-day general licence will enable "the most vulnerable nations" to purchase Russian oil currently stranded at sea.
He said the measure will help stabilise global markets.
Quote: "This extension will provide additional flexibility, and we will work with these nations to provide specific licences as needed. This general licence will help stabilise the physical crude market and ensure oil reaches the most energy-vulnerable countries."
Details: The decision was officially announced just two days after Washington reinstated sanctions on Russian oil by not extending the previous exemption.
Background:
- The measure is a temporary waiver of sanctions on Russian oil already at sea. The US first introduced the exemption on 12 March in an attempt to ease oil supply shortages and address high prices caused by Iran's closure of the Strait of Hormuz.
- The authorisation expired on 11 April. The US Treasury later extended the exemption to 16 May.
- The exemptions have caused controversy, particularly among Washington's European allies, who view sanctions as essential to deprive Russia of oil revenues and reduce Moscow's ability to finance its war against Ukraine.
- But some countries, particularly India and Indonesia, have asked the US to extend the sanctions exemptions because the war with Iran and the near-total closure of the Strait of Hormuz have removed millions of barrels of oil from global markets every day.
- US President Donald Trump has said that US sanctions on Russian oil will be fully reinstated once the Middle East crisis is over.
- Ukrainian President Volodymyr Zelenskyy has said he does not understand how the US could ease sanctions on Russia.
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