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The previous temporary easing of sanctions had little effect on global oil prices but contributed to an increase in Russia’s revenues.
The administration of U.S. President Donald Trump has extended until May 16 a license allowing the purchase of Russian crude oil and petroleum products already loaded onto tankers — just days after Treasury Secretary Scott Bessent said Washington would not take such a step, Bloomberg reports.
The U.S. Treasury Department has published a statement stating that the purchase of such Russian oil is permitted from Friday, April 17. The previous license expired on April 11. The new authorization covers Russian oil loaded onto tankers on or before April 17.
This indicates a shift in U.S. policy compared to Bessent’s statement on Wednesday, April 15, that the United States would not extend licenses allowing the temporary purchase of Russian and Iranian oil already at sea. The Iranian oil license is set to expire on Sunday, April 19.
The new measure opens access to additional oil supplies for countries struggling with fuel shortages. Some Asian countries have urged the Trump administration to extend the Russian oil exemption, as disruptions in oil supply are becoming increasingly severe. However, critics of the initiative, including European countries, argue that it enriches Moscow while undermining the sanctions regime imposed after Russia’s full-scale invasion of Ukraine.
“The previous sanctions exemption on Russian oil did not significantly stabilize global energy markets but brought Russia substantial unexpected revenue. Now Trump is giving a gift to our adversaries. Washington continues to pay a high price for minimal economic relief,” said Brett Erickson, executive director of consulting firm Obsidian Risk Advisors.
U.S. Democratic senators have already called the decision to extend the license “shameful.” Senators Jeanne Shaheen, Elizabeth Warren, and Senate Minority Leader Chuck Schumer issued a joint statement questioning what message this extension sends following recent Russian attacks on Ukraine.
“Putin has become one of the biggest beneficiaries of President Trump’s war against Iran, as Russia’s oil revenues nearly doubled in March. Enough is enough. President Trump must stop letting Putin fool him and impose additional sanctions on Putin, who is clearly not under enough pressure. If President Trump does not change course, the war in Ukraine will continue, and more innocent people will die,” the senators said.
Oil prices have surged sharply since the start of the U.S.–Israel war with Iran, driving up fuel prices worldwide. The conflict has effectively closed the Strait of Hormuz — a key energy transport route through which about one-fifth of global oil supplies pass. Rising gasoline prices in the U.S. have fueled public dissatisfaction ahead of midterm elections, with Trump’s Republicans fearing the loss of their congressional majority.
Last week, the U.S. and Iran agreed to a 14-day ceasefire. On Friday, April 17, Trump said the two countries had held “several very good discussions” and that negotiations would continue over the weekend. Tehran stated on Friday that the Strait of Hormuz is open to commercial shipping after Israel agreed to a ceasefire in Lebanon. This led to a sharp drop in oil prices amid hopes that Washington and Tehran are close to an agreement to end the war and allow larger volumes of energy to pass safely through the strait. Brent crude fell by 9% to around $90 per barrel.
Bessent argued last month that “narrowly targeted measures” would not bring significant financial benefit to the Russian government. The New York Times reported on April 13 that after the easing of U.S. sanctions, Russia was earning over $100 million in additional daily oil revenue. The International Energy Agency stated that Moscow’s oil revenues in March nearly doubled compared to February due to tensions in the Middle East, reaching $19 billion.
However, according to experts, the temporary easing of sanctions on Russian oil has not significantly affected global oil prices, which the U.S. aimed to stabilize, as a significant portion of Russian oil is transported via the so-called “shadow fleet” to bypass international restrictions.
