The United States has announced another 30-day extension of a sanctions waiver that permits purchases of Russian seaborne oil, aiming to assist 'energy-vulnerable' countries affected by the Iran conflict. This decision reverses earlier plans not to grant an extension.
Treasury Secretary Scott Bessent stated that the Treasury issued the 30-day general license after a previous waiver expired on Saturday. The license allows temporary access to Russian oil and petroleum products stranded on tankers without violating severe US sanctions on Russian oil majors. 'This general license will help stabilize the physical crude market and ensure oil reaches the most energy-vulnerable countries,' Bessent explained.
The move marks the second time the Treasury has allowed the sanctions waiver to lapse and subsequently extended it. Two senior Democratic senators, Jeanne Shaheen of New Hampshire and Elizabeth Warren of Massachusetts, criticized the decision as an 'indefensible gift' to Russian President Vladimir Putin. 'Every additional dollar the Kremlin earns from this license helps Putin finance his illegal war against Ukraine and kill innocent Ukrainians,' they said in a joint statement. They argued that the sanctions relief has not lowered gasoline prices in the US or stabilized global energy markets.
The Trump administration imposed sanctions on Russian oil majors Rosneft and Lukoil last year to pressure Russia to end its war in Ukraine by depriving Moscow of vital oil revenues. However, after US-Israeli attacks on Iran drove up global oil prices, the Treasury first issued the temporary license in March to ease oil supply shortages and mitigate price spikes by releasing sanctioned Russian oil and petroleum products stranded in tankers. The waivers do not apply to oil currently being pumped by Russia.
Analysts suggest that the short-term waivers may help some individual countries dependent on Gulf oil supplies but will do little to reduce US gasoline prices. 'It is not yet clear whether these short-term authorizations have had any meaningful impact on U.S. gasoline prices,' said Stephanie Connor, a former policy director at the Treasury's Office of Foreign Assets Control. She noted that British and European sanctions on Russian oil purchases remain in place.
As with the previous waiver, the license only permits purchases of Russian crude and petroleum products loaded on vessels as of April 17, limiting sales volume and excluding more recently loaded Russian oil. Charles Lichfield, deputy director of the Atlantic Council's GeoEconomics Center, said the waivers would boost Russia's oil revenues, already supported by higher prices, while offsetting the impact of increased Ukrainian strikes on Russian oil refineries and other infrastructure. 'Given the information coming out of the Russian economy that looks bad, this might be the time to really hit them with sanctions,' Lichfield said. 'But I don't see that the administration has come to that conclusion.'
On Monday, benchmark Brent oil futures prices rose about 2.6% to close above $112 per barrel due to growing supply concerns. Bessent, who is in Paris for a Group of Seven finance leaders meeting, said he wants G7 and other allies to enforce Iran sanctions more strongly.
