US likely to extend Russian oil waiver, sources say

U.S. President Donald Trump’s administration is likely to extend as soon as Friday a waiver allowing countries to buy some sanctioned Russian oil and petroleum products, two sources familiar with the matter told Reuters.

The U.S. Treasury Department has allowed purchases of Russian oil and products at sea since mid-March with a 30-day waiver that expires on April 11, part of efforts to control global energy prices during the U.S.-Israeli war with Iran.

Russia’s presidential envoy Kirill Dmitriev had said the original waiver would free 100 million barrels of Russian crude, equal to almost a day’s worth of global output.

U.S. Treasury Secretary Scott Bessent met ⁠with Trump in the White House on Thursday to talk about extending the waiver, and they agreed it was a good idea, one of the sources said, asking not to be named.

Officials at the White House and Treasury Department did not immediately comment on the matter.

Oil prices have spiked since the start of the war due to the partial closure of the Strait of Hormuz, through which about 20% of the world’s oil and gas had been shipped daily before the conflict. The war is creating the biggest oil supply disruption in history, the 32-nation International Energy Agency has said.

Rising fuel prices are a major concern for Trump and his Republican party leading into midterm elections in November.

The waivers have been criticized by politicians at home and abroad as they could complicate the West’s efforts to deprive Russia ⁠of revenue for its war in Ukraine and put Washington at odds with its allies.

European Commission President Ursula von der Leyen has said now is not the time to relax sanctions against Russia.

CONGRESSIONAL BACKLASH

The U.S. also waived sanctions on Iranian oil at sea on March 20 for 30 days, in an effort to control prices, spurring criticism from lawmakers from both political parties.

“Waiving oil sanctions now advantages the countries that wish to do us harm,” ⁠Republican Senator Jerry Moran said last month, as he urged the administration to not renew the waivers. “Iran and Russia are actively working together to place Americans and other innocent lives at risk.”

Senate Minority Leader Chuck Schumer and fellow Democratic Senator Jeanne Shaheen urged the administration on Friday not to renew the ⁠license on Russian oil. “It remains far from clear that the extraordinary step of providing sanctions relief to Russia provided any relief for U.S. consumers or eased the global energy crisis,” they said in a statement.

“Instead, even as Russia supported Iran in targeting Americans, the Trump ⁠Administration has rewarded the Kremlin while Russia has continued to launch strikes at Ukraine—including a barrage of 1,000 strikes, opens new tab in late March,” they said.

India, a U.S. ally vulnerable to fuel shocks resulting from the war, has expected Washington to renew the waiver on Russian oil.

Source: Reuters

-- Agencies