The US Treasury Secretary, Scott Bessent, announced on Monday, May 18, a new 30-day extension of a waiver on sanctions targeting Russian oil transported by sea. This decision allows the purchase of crude oil from cargoes blocked on tankers, officially to help countries “vulnerable in terms of energy” affected by the war in Iran. In a message published on X, the American official specified that this general license comes after the expiration, last Saturday, of a previous waiver. It temporarily authorizes access to Russian oil and petroleum products normally affected by US sanctions, without compromising the framework for major Russian companies.
The decision was made public at a meeting of G7 finance ministers, surprising several European allies of Washington. It comes as Scott Bessent indicated last month that this exemption would not be renewed once the deadline of May 16 arrived, according to a European G7 official.
For Kiev and the European Commission, this extension is a setback. Brussels called on Washington to fully reimpose sanctions to reduce Russia’s energy resources, more than four years after the start of the war led by Vladimir Putin, as reported by Politico. When announced in March, several European officials criticized the waiver granted by Washington. German Chancellor Friedrich Merz called it a “bad” decision. Meanwhile, President of the European Council, Antonio Costa, deemed this American “unilateral” initiative “very worrying,” stating that it has “implications for European security.”
According to a source close to the matter cited by Reuters, this extension responds to the request of vulnerable countries facing supply tensions due to the Israeli-Iranian war and the closure of the Strait of Hormuz, which disrupts oil flows.
Scott Bessent claims that this license should allow for “greater flexibility” and facilitate the transportation of oil to countries most exposed to energy tensions, including in the face of Chinese competition in markets. It also aims to stabilize the global oil market, according to him. This decision marks the second time the US Treasury has let a waiver expire before extending it. It comes as Washington seeks to adjust its oil sanctions while avoiding tensions in global supply.
However, it has sparked sharp criticism from Democrats. Two senators, Jeanne Shaheen and Elizabeth Warren, have denounced a measure they describe as an “unacceptable gift” to Russian President Vladimir Putin. They argue that every additional oil revenue contributes to financing the war against Ukraine. They also dispute the economic effectiveness of this measure, believing it does not lower gas prices in the US or sustainably stabilize global energy markets.
Despite the Trump administration tightening sanctions against Russian oil giants Rosneft and Lukoil to reduce Kremlin revenues, recent tensions in the Middle East and resulting oil price increases have led to temporary reintroduction of these waivers. However, these licenses only affect oil already blocked in maritime circuits, not current Russian production. Analysts suggest they could relieve some countries dependent on Gulf supplies, without significantly impacting pump prices in the US.
