Trump’s Treasury Department maintained a short-term exemption for Russian oil after the European Union questioned why Washington was easing pressure on Moscow while the war in Ukraine continues to drain lives, money and fuel routes.
European Trade Commissioner Maros Sefcovic said he raised the issue on Friday with US Treasury Secretary Scott Besent, after Washington allowed more deliveries and sales of sanctioned Russian crude already on board ships.
The new Treasury license covers Russian oil and petroleum products loaded on ships as of April 17. It runs through May 16 and replaces the previous 30-day exemption that expired on April 11.
The permission does not apply to deals linked to Iran, Cuba or North Korea. So this is not a clean rollback of sanctions, but it still gives buyers room to deal with Russian barrels at sea.
EU officials put pressure on Bessent while Washington keeps Russian oil shipments flowing until May 16
Sefcovic told reporters that US officials said the aid was tied to poor countries that depend heavily on imported oil. These countries are said to be under serious pressure after the Strait of Hormuz became largely closed during the fragile ceasefire between the United States and Iran.
His comment was direct. “My clear understanding is that this will not be repeated in the future, and this was also done because many low-income countries were in a very difficult situation,” Sefcovic said.
Pisant gave senators a similar reason this week. He said the exemption was extended for another 30 days after several exposed countries requested assistance from Washington. These requests came during the spring meetings of the International Monetary Fund and the World Bank last week.
The United States first suspended parts of its restrictions on Russian oil in early March, after Iran closed the Strait of Hormuz to shipping. Iran did so after US and Israeli strikes. Washington’s goal was to keep crude oil supplies moving and prevent prices from rising further after the Gulf War pushed oil above $100 a barrel.
On April 13, the United States renewed the waiver until May 16. Then, on April 19, the Trump administration renewed permission for countries to buy sanctioned Russian oil at sea for about an additional month. This came even as lawmakers accused the administration of being too lenient with Moscow.
The Treasury Department said the reason was supply. A Treasury spokesman said: “As negotiations (with Iran) accelerate, the Treasury wants to ensure oil is available to those who need it.”
This response was embarrassing because just two days ago, Besant said that Washington would not renew the Russian oil exemption. He also said the United States would not extend a separate Iranian oil waiver that was set to expire on Sunday.
Ukraine hits Russian oil sites as Moscow loses export volume and revenue
The concession did not give Russia the kind of payday that Moscow might have wanted. Ukraine has been bombing Russian port and energy infrastructure since March 21, using long-range strikes to disable loading points and slow the flow of oil onto tankers.
Kyiv’s goal is simple enough. If Russia cannot load the barrels, it will not be able to take full advantage when crude oil prices jump. This is important because oil prices rose above $100 a barrel during March and April, as the Gulf War eased concerns about global supplies.
Ukrainian President Volodymyr Zelensky said the strikes cost Russia at least $2.3 billion in oil revenue in March. “In March alone, Russian oil revenue losses from our long-range capabilities are estimated at no less than $2.3 billion,” Volodymyr said in a video speech on Sunday, April 19. “In just one month. We will continue this work in April.”
Ukraine’s Foreign Intelligence Service cited S&P Global Platts figures that showed Russian oil shipments fell by 300,000 barrels per day in March. Refined product flows also decreased by 200 thousand barrels per day.
April may have done more damage to Moscow. Russian business newspaper Kommersant said exports fell to “their lowest levels since the summer of 2024.” She also said: “By the end of the month, it could fall to its lowest levels since 2023.”
Reuters Allegedly Weak exports forced Russia to reduce crude oil production by 300,000 to 400,000 barrels per day in April.
The head of Swedish military intelligence, Thomas Nilsson, recently told reporters that Russia would need to keep the oil price above $100 a barrel for the rest of the year just to cover this year’s budget deficit.
