US renews Russia oil waiver after pressure from nations
The Trump administration renewed its waiver allowing nations to purchase sanctioned Russian oil offshore for about a month.
The US Treasury Department’s waiver allows countries to purchase Russian oil and oil products loaded on ships until May 16.
This replaces the 30-day exemption that expired on April 11 and excludes transactions involving Iran, Cuba and North Korea.
The move is part of the administration’s efforts to control global energy prices, which have risen during the U.S.-Israeli war against Iran.
This comes after nations in Asia suffering from a global energy shock pressured Washington to allow alternative sources to reach markets.
“As negotiations (with Iran) accelerate, Treasury wants to ensure oil reaches those who need it,” a Treasury Department spokesman said.
Just two days ago, Treasury Secretary Scott Bessent said Washington would not renew waivers for Russian oil and another waiver for Iranian oil that expires Sunday.
Global oil prices fell 9 percent to nearly $90 per barrel after Iran temporarily reopened the Strait of Hormuz, the oil chokepoint in the Gulf.
But the International Energy Agency said the war had already led to the worst global energy supply disruption in history.
The war, now in its eighth week, has damaged more than 80 oil and gas facilities in the Middle East and Tehran has warned it could close the strait again if the US navy’s latest blockade of Iranian ports continues.
US President Donald Trump also faced pressure from partner countries regarding the oil price. A US source said that partner countries attending the Group of 20, World Bank and International Monetary Fund meetings held in Washington this week have requested the US extend the exemption.
U.S. lawmakers from both political parties have harshly criticized the administration for sanctions waivers and said they are ready to help Iran’s economy while it is at war with the United States and Russia is at war with Ukraine.
Exemptions could disrupt Western efforts to deprive Russia of revenue from its war in Ukraine and put Washington at odds with its allies.
European Commission President Ursula von der Leyen said it was not time to relax sanctions against Russia.
Russian presidential envoy Kirill Dmitriev said in a social media post about the renewal of the exemption that US-Russia economic and energy cooperation will continue.
He had said the initial exemption for Russian oil would free up 100 million barrels of crude oil, nearly equal to a day’s global production.
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