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The United States has extended the so-called “pause on sanctions” targeting Russian oil and petroleum products shipments, in order to alleviate the fuel shortage caused by the war with Iran. This decision comes just days after U.S. Treasury Secretary Scott Bessent had excluded such a possibility.
In a statement from the Treasury Department, it was specified that for the next 30 days, American sanctions will not apply to Russian oil cargoes loaded on tankers as of Friday, April 17.
This extension follows a previous easing of sanctions, which had expired on April 11. Moscow, facing limited revenue opportunities due to the conflict with Ukraine, sees this as an opportunity to enhance its hydrocarbon exports.
The new license will be valid until May 16.
Interestingly, just last Wednesday, U.S. Treasury Secretary Bessent had ruled out the possibility of extending the license. He had stated, “We will not extend the general license for Russian oil and we will not extend the general license for Iranian oil.”
This move by the Trump administration aims to address global fuel supply disruptions that arose when Tehran effectively closed the Strait of Hormuz, a key maritime route for oil transport.
This situation led to a significant rise in oil prices, putting pressure on countries dependent on oil exports. Even in the United States, gasoline prices have increased, impacting American households as crucial midterm elections approach.
However, these exemptions may complicate efforts to cut off Russia’s oil revenue needed for the war in Ukraine, as Russia, a major oil producer, benefits from the Middle East situation.
During a G7 finance ministers meeting in Washington this week, French Economy and Finance Minister Roland Lescure emphasized that “Russia should not profit from what is happening in Iran.”
He also added that Ukraine should not be a “collateral victim.”
Democratic senators Jeanne Shaheen, Chuck Schumer, and Elizabeth Warren criticized this decision as “shameful” in a joint statement.
“This decision is shameful and represents a 180-degree turn from Secretary Bessent, just two days after he committed not to extend the sanction relief against Russia,” the senators stated.
“Make no mistake, Putin has been one of the main beneficiaries of President Trump’s war on Iran, with Russia nearly doubling its oil revenues in March,” they added.
The Russian invasion of Ukraine, launched in 2022, has become the deadliest conflict in Europe since World War II.
Additional sources: AP, AFP
