US Extends Russian Oil Sanctions Waiver to Stabilize Market

US Treasury Secretary Scott Bessent has announced another 30-day extension of a sanctions waiver allowing purchases of Russian seaborne oil, reversing earlier plans not to prolong the measure.

Bessent said the Treasury had issued the new general license after the previous waiver expired on Saturday. It allows temporary access to Russian oil and petroleum products stranded on tankers without violating US sanctions on Russian oil majors.

A source familiar with the decision told Reuters that the extension had been requested by poor and vulnerable countries unable to receive Gulf oil shipments because of the US-Israeli war with Iran and the closure of the Strait of Hormuz.

“This general license will help stabilize the physical crude market and ensure oil reaches the most energy-vulnerable countries”, Bessent said.

Two senior Democratic senators, Jeanne Shaheen and Elizabeth Warren, called the move an “indefensible gift” to Russian President Vladimir Putin, saying the additional revenue would help fund Moscow’s war against Ukraine.

The Trump administration imposed sanctions on Russian oil majors Rosneft and Lukoil last year to pressure Moscow over the war. It first issued a temporary license in March after US-Israeli attacks on Iran drove up oil prices.

The waivers apply only to Russian crude and petroleum products loaded on vessels as of 17 April, limiting the volume of sales and excluding newly pumped Russian oil.

Benchmark Brent crude futures rose about 2.6% on Monday to close above $112 per barrel amid concerns over tight supply while the Strait of Hormuz remains closed.

(reuters, bak)