US Extends Sanctions Waiver Allowing Continued Purchase of Russian Oil

WASHINGTON, Apr 18: In a significant policy adjustment, the US Department of the Treasury has extended a temporary sanctions waiver permitting countries to continue purchasing Russian petroleum products that were already in transit before April 17. The move provides short-term stability to global oil markets grappling with geopolitical tensions and supply disruptions.

The updated authorization, issued late Friday, allows transactions involving Russian oil shipments already loaded onto vessels to continue until May 16. This extension replaces the earlier waiver that expired on April 11, offering a limited window for buyers to complete ongoing deals without breaching US sanctions.

According to the revised general licence, formally labeled “General License No. 134B,” the measure supersedes its predecessor and ensures continuity in global supply chains while maintaining pressure on Moscow through broader restrictions. The waiver strictly applies to oil cargo that was already at sea on or before April 17, preventing new purchases under the exemption.

Earlier in March, the United States had introduced similar temporary relief measures, initially granting a one-month exemption to India starting March 5. The decision was later expanded to include several other nations heavily reliant on Russian energy imports. Those waivers lapsed on April 11, briefly raising concerns about supply bottlenecks and price spikes in international markets.

Despite the extension, the US has maintained clear boundaries on the scope of the waiver. The latest directive explicitly excludes any transactions involving entities or individuals linked to Iran, North Korea, Cuba, or certain regions of Ukraine. This restriction underscores Washington’s broader sanctions framework targeting multiple geopolitical flashpoints simultaneously.

Just days before the announcement, Scott Bessent, the US Treasury Secretary, had indicated that the administration was unlikely to renew the waiver, signaling a tougher stance on energy related transactions involving Russia. However, the subsequent extension reflects a more calibrated approach aimed at balancing economic realities with strategic objectives.

The earlier sanctions relief had enabled approximately 140 million barrels of Russian oil already loaded onto ships to reach global markets. This supply proved crucial at a time when oil prices surged due to escalating tensions linked to the ongoing conflict involving the United States and Iran. Analysts suggest that abruptly halting these shipments could have triggered further volatility in already strained energy markets.

Energy experts view the latest extension as a pragmatic step to avoid sudden disruptions while gradually tightening restrictions. By limiting the waiver strictly to pre-loaded cargo, the US continues to discourage fresh trade with Russia while allowing existing logistical commitments to be fulfilled.

Market reactions to the announcement have been cautiously optimistic, with traders interpreting the move as a sign that Washington remains mindful of global economic stability. However, uncertainty persists over whether further extensions will be granted beyond May 16, especially as geopolitical tensions continue to evolve.

The decision highlights the delicate balancing act facing US policymakers as they navigate sanctions enforcement without destabilizing global energy supplies. While the waiver offers temporary relief, it also reinforces the broader message that long-term reliance on Russian oil remains subject to increasing restrictions under the evolving sanctions regime.