U.S. Extends Russian Seaborne Oil Sanctions Relief by 30 Days
Decision follows requests from about 10 countries during IMF-World Bank meetings, offers relief to India and other nations facing supply disruptions
Quick Look
- The United States has granted a 30-day extension for sanctions relief on Russian seaborne oil, providing crucial support to India and other nations facing oil supply disruptions.
- The decision follows requests from finance ministers of about 10 countries during last week's IMF and World Bank meetings.
- The extension comes amid heightened volatility in global energy markets triggered by the ongoing U.S.-Israeli conflict with Iran, which has disrupted flows through the Strait of Hormuz.
AI-generated summary
The United States has extended sanctions relief on Russian seaborne oil by 30 days, offering relief to India and other vulnerable countries grappling with supply disruptions following the Strait of Hormuz crisis.
U.S. Treasury Secretary Scott Bessent said on Wednesday the decision was taken after requests from finance ministers of about 10 countries during last week's International Monetary Fund and World Bank meetings, as concerns mounted over oil shortages and rising prices.
Speaking at a U.S. Senate Appropriations subcommittee budget hearing, Bessent said estimates that Iran has gained more than $14 billion from the waivers are "a myth," without providing an alternative figure.
The move marks a reversal from his comments last week that the expiring waivers would not be renewed.
The extension comes amid heightened volatility in global energy markets triggered by the ongoing U.S.-Israeli conflict with Iran, which has disrupted flows through the Strait of Hormuz, a key oil transit route handling roughly a fifth of global supply.
Last week, the Trump administration had issued a separate waiver allowing countries, including India, to purchase sanctioned Russian oil loaded onto vessels for a limited period, as part of efforts to contain a surge in global energy prices.
The U.S. Treasury Department said the license allows purchases of Russian oil loaded as of Friday through May 16 and replaces a previous 30-day waiver that expired on April 11.
The authorization excludes transactions involving Iran, Cuba and North Korea.
The latest extension follows pressure from partner countries concerned about tightening supplies. Officials from multiple economies raised the issue on the sidelines of G20, IMF and World Bank meetings in Washington.
India, one of the largest buyers of Russian crude since 2022, has been engaged in discussions with Washington over extending the waiver, citing supply chain constraints linked to the West Asia conflict. The issue also figured during recent high-level engagements, including a call between U.S. President Donald Trump and Prime Minister Narendra Modi.
Earlier waivers had allowed significant volumes of oil to reach global markets, helping ease supply pressures. However, the continuation of such measures could complicate Western efforts to curb Russia's energy revenues tied to the Ukraine war.
