US Extends Sanctions Waiver for Russian Oil Imports Until Further Notice

US Extends Waiver for Sanctioned Russian Oil Until June 17

The United States has announced a 30-day extension of a sanctions waiver for countries buying Russian oil and petroleum products currently loaded on tankers at sea. The waiver, which was initially issued in March, will now expire on June 17.

According to Treasury Secretary Scott Bessent, the extension aims to provide temporary access to Russian oil stranded at sea, allowing vulnerable nations to stabilize their energy markets. The general license will help reroute existing supply to countries most in need and reduce China’s ability to stockpile discounted oil.

The US initially issued the waiver to stabilize global energy markets after crude oil prices surged above $100 per barrel following US-Israeli strikes on Iran. However, energy markets have failed to stabilize amid ongoing negotiations for a peace proposal between the US and Iran, as well as the closure of the Strait of Hormuz, a vital waterway for global oil and gas shipments.

As of Monday, there are approximately 113 million barrels of Russian crude and condensate loaded on ships and at sea. Floating storage of Russian crude has declined significantly since the start of the year, from a high of about 19 million barrels in late January to 7 million barrels now.

Russian crude exports have been pressured by ongoing Ukrainian drone strikes, which have disrupted export infrastructure and reduced shipping capacity. Despite these challenges, Moscow has continued to export oil to India and China, with exports standing at over 2 million barrels per day to India and 1.05 million barrels per day to China.

The US waiver extension will last until June 17, providing additional flexibility for countries buying Russian oil and petroleum products. The move aims to stabilize the physical crude market and ensure oil reaches energy-vulnerable countries.

Source: Al Jazeera