U.S. Announces Extension of Russian Oil Sanctions Waiver

(MENAFN) Washington has once again rolled over a sanctions waiver permitting Russian crude and petroleum products already loaded onto tankers to be delivered and offloaded, Treasury Secretary Scott Bessent confirmed.

The latest exemption — which had lapsed on Saturday — follows an earlier 30-day waiver that expired on April 11, granting buyers an additional 30 days to complete shipments of Russian seaborne oil without running afoul of U.S. restrictions. The move reportedly came at the request of several countries seeking more time to take delivery of outstanding cargoes.

Writing on X on Monday, Bessent said the new 30-day general license is designed to allow "the most vulnerable nations" to temporarily access Russian oil "currently stranded at sea."

The extension would provide "additional flexibility," help "stabilize the physical crude market," and limit China's ability to "stockpile discounted barrels," he added.

Washington introduced the original waiver earlier this year in a bid to ease supply shortfalls and contain price surges triggered by the de facto closure of the Strait of Hormuz — a consequence of the joint U.S.-Israeli military campaign against Iran. The critical chokepoint handles roughly 20% of global seaborne crude exports, and its disruption has sent shockwaves through energy markets.

The measure has nonetheless fallen short of cooling U.S. gasoline prices, which remain stubbornly elevated despite intervention by the Treasury and other agencies, according to media.

Bessent has stood behind the relief measures before, telling U.S. lawmakers in April that the waiver had enabled Treasury to put "more than 250 million barrels on the water" and ease supply anxieties.

The U.S. and its allies have maintained sanctions and price-cap mechanisms on Russian oil exports since the Ukraine conflict intensified in 2022, aiming to choke off revenue flows to Moscow. The limited waiver applies exclusively to cargoes already at sea when the latest restrictions took effect, and does not greenlight new purchases outside the existing sanctions framework.

Moscow has signaled its readiness to fill any oil supply vacuum created by the Middle East conflict, and several Asian nations have already moved to lock in Russian crude since Washington first eased the measures.

EU officials have pushed back sharply against the decision, with European Commission President Ursula von der Leyen stating it is "not the time to relax sanctions against Russia."

The International Energy Agency, meanwhile, has cautioned that the world is confronting "the largest energy crisis" stemming from the Iran war, warning that Europe could face a disproportionately severe blow.

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