The United States has announced a 30-day extension of a sanctions waiver allowing purchases of Russian seaborne oil, reversing earlier plans not to grant an extension. Treasury Secretary Scott Bessent said the move aims to help 'energy-vulnerable' countries affected by the Iran war and stabilise the physical crude market.
The waiver permits temporary access to Russian oil and petroleum products stranded on tankers without violating severe US sanctions on Russian oil majors. Bessent argued it would help reroute supply to countries most in need, allowing them to compete with China for previously sanctioned oil.
Two senior Democratic senators, Jeanne Shaheen and Elizabeth Warren, criticised the extension as an 'indefensible gift' to President Vladimir Putin, stating that every additional dollar earned helps finance the war in Ukraine. They said the waiver has not lowered US gasoline prices or stabilised global energy markets.
Analysts noted that short-term waivers may help some countries but are unlikely to reduce US gasoline prices. The licence applies only to oil loaded on vessels as of 17 April, limiting sales volume. Charles Lichfield of the Atlantic Council said the waivers boost Russia's oil revenues, offsetting the impact of Ukrainian strikes on Russian refineries.
On Monday, Brent crude oil prices rose about 2.6% to above $112 per barrel due to supply concerns. Bessent, attending a G7 finance meeting in Paris, called for stronger enforcement of Iran sanctions by allies.
