US extends sanctions waiver on Russian oil as supply crunch pushes up Brent crude price | US foreign policy

The United States announced a new 30-day extension of the sanctions waiver allowing purchases of Russian maritime oil to help “energy vulnerable” countries affected by the war in Iran, reversing its plan not to grant an extension.

Treasury Secretary Scott Bessent said Treasury was issuing the general license 30 days after a previous waiver expired Saturday. This will allow temporary access to Russian oil and oil products blocked on tankers without violating tough US sanctions against Russian oil majors, he said.

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

Bessent, who told The Associated Press last month that no further extension of the Russian oil sanctions waiver was planned, argued Monday that the measure would help redirect existing supplies to countries that need it most, allowing them to compete with China for previously sanctioned oil.

This is the second time Treasury has allowed the sanctions waiver to expire and then extended it.

Two leading Democratic senators, Jeanne Shaheen of New Hampshire and Elizabeth Warren of Massachusetts, called the move 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 statement. They said U.S. sanctions relief did not lower gasoline prices in the country or stabilize global energy markets.

Last year, the Trump administration imposed sanctions on Russian oil majors Rosneft and Lukoil to pressure Russia into ending its war in Ukraine by depriving Moscow of vital oil revenues.

But after U.S.-Israeli attacks on Iran sent global oil prices soaring, the Treasury first issued a temporary license in March in an effort to ease oil supply shortages and ease price hikes by releasing sanctioned Russian oil and oil products stuck on tankers. The waivers do not apply to oil currently pumped by Russia.

Analysts said the short-term waivers could help some countries dependent on Gulf oil supplies, but would not help lower U.S. gasoline prices. “It is not yet clear whether these short-term authorizations have had a significant impact on gasoline prices in the United States,” said Stephanie Connor, former policy director at the Treasury’s Office of Foreign Assets Control, adding that British and European sanctions on Russian oil purchases remain in effect.

As in the previous waiver, the license allowed purchases of Russian crude and oil products loaded on ships starting April 17, limiting the volume of sales and not allowing access to more recently loaded Russian oil.

Charles Lichfield, deputy director of the Atlantic Council’s Center for Geoeconomics, said the waivers would increase Russia’s oil revenues, already supported by rising oil prices, while offsetting the impact of increased Ukrainian strikes on Russian oil refineries and other infrastructure.

“Given the bad news coming out of the Russian economy, perhaps now is the time to impose real sanctions on them,” Lichfield said. “But I don’t think the administration has reached that conclusion.”

On Monday, benchmark Brent oil futures rose about 2.6% to close above $112 a barrel on growing concerns about tight supply.

Bessent, who is in Paris for a meeting of Group of Seven financial leaders, said he wanted the G7 and its other allies to enforce sanctions against Iran more forcefully.