- Lawmakers criticize ‘benefiting’ Russia amid Ukraine war.
- Analyst warns energy market tools are ‘almost exhausted’
- The European Union calls for no easing of sanctions against Russia.
WASHINGTON: The Trump administration renewed a waiver allowing countries to buy sanctioned Russian oil offshore for about a month, even as lawmakers accused the government of going soft on Moscow as its war against Ukraine continues.
The Treasury Department’s waiver allows countries to purchase Russian oil and petroleum products loaded on ships starting Friday and lasting through May 16. It replaces a 30-day waiver 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 soared during the U.S.-Israeli war with Iran. The move came after countries in Asia, suffering from the global energy shock, pressed Washington to allow alternative supplies to reach markets.
Resumption by treasury
“As negotiations (with Iran) accelerate, Treasury wants to ensure that oil is available to those who need it,” a Treasury Department spokesperson said.
Two days earlier, Treasury Secretary Scott Bessent said Washington would not renew the waiver for Russian oil and another for Iranian oil, which expire on Sunday.
Global oil prices fell 9% on Friday to around $90 a barrel after Iran temporarily reopened the Strait of Hormuz, an oil bottleneck in the Gulf. But the war has already created the worst global disruption to energy supplies in history, the International Energy Agency said.
The war, which entered its eighth week on Saturday, has damaged more than 80 oil and gas installations in the Middle East, and Tehran has warned it could close the strait again if the U.S. Navy’s recent blockade of Iranian ports continues.
High oil prices pose a threat to President Donald Trump’s fellow Republicans as the November midterm elections approach.
Trump also faced pressure from partner countries on the price of oil. A US source said partner countries, on the sidelines of meetings of the Group of 20, the World Bank and the International Monetary Fund in Washington this week, had asked the United States to extend the waiver.
And he talked about oil this week in a call with Indian Prime Minister Narendra Modi, a big buyer of Russian oil.
The Iranian oil waiver, granted on March 20 by the Treasury Department, allowed some 140 million barrels of oil to reach global markets and helped relieve pressure on energy supplies, Bessent said last month.
Lasting damage
U.S. lawmakers from both political parties criticized the administration for the sanctions waivers, saying they were willing to help the economy of Iran while it was at war with the United States and of Russia while it was at war with Ukraine.
The waivers could hamper 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 now is not the time to ease sanctions against Russia.
Russian presidential envoy Kirill Dmitriev said in a social media post about the waiver renewal: “economic and energy cooperation between the United States and Russia will continue.”
He said the first waiver for Russian oil would free up 100 million barrels of crude, the equivalent of nearly a day of global production.
Brett Erickson, a sanctions expert at consultancy Obsidian Risk Advisors, said Friday’s renewal was likely not the last waiver granted by Washington.
“The conflict has caused lasting damage to global energy markets, and the tools available to stabilize them are almost exhausted,” Erickson said.
