US extends Russian oil sanctions exemption by one month

Washington: The US Department of the Treasury has issued a fresh temporary waiver allowing the sale and transport of sanctioned Russian Federation oil that is stranded at sea, in a move aimed at easing pressure on global energy markets amid ongoing geopolitical tensions.

The licence permits countries to purchase Russian crude and petroleum products loaded onto vessels on or before 17 April 2026. It will remain valid until 16 May 2026, replacing a previous 30-day waiver that expired on 11 April.

According to the Treasury’s official notice, the authorisation covers transactions necessary for the sale, delivery and offloading of Russian-origin crude and petroleum products, including those involving blocked vessels. However, it explicitly excludes any dealings involving entities linked to Iran, North Korea, Cuba, and designated regions of Ukraine under US sanctions regimes.

The waiver follows comments from US Treasury Secretary Scott Bessent, who indicated that the United States would not renew earlier limited licences that had allowed certain oil transactions involving Russia and Iran.

Meanwhile, Russian envoy Kirill Dmitriev suggested that the initial waiver could have released around 100 million barrels of crude oil into the market, equivalent to nearly one day of global supply.

The move has drawn criticism from some European officials, including European Commission President Ursula von der Leyen, who has warned that such exemptions could weaken sanctions designed to restrict Russia’s oil revenues linked to the conflict in Ukraine.

ALSO READ | Can India keep importing Russian oil without straining US ties?