US Treasury Approves Expanded Sales Of Russian Oil Despite Sanctions
US decision permits expanded Russian oil sales, signalling potential shift in energy supply strategy.
The US Treasury Department has issued a temporary authorization allowing the sale of additional Russian oil cargoes that were already loaded onto ships, as part of efforts to stabilize global energy markets amid a rapidly escalating crisis in the Middle East.
The measure, structured as a 30-day sanctions waiver, permits countries to purchase Russian crude and petroleum products that are currently “stranded at sea” because of sanctions and logistical disruptions. Officials said the authorization is narrowly designed to allow oil already in transit to reach buyers without significantly increasing revenue for Moscow.
The decision comes as global oil markets face severe turbulence following escalating hostilities involving Iran and Western allies, which have disrupted shipping routes and threatened the flow of crude through the Strait of Hormuz, one of the world’s most critical oil chokepoints. The conflict has driven oil prices sharply higher, prompting emergency steps to prevent a supply shock.
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US officials said the waiver is a short-term intervention intended to keep crude flowing into global markets and prevent further price spikes. Oil prices briefly eased after the announcement, with benchmark Brent crude dropping below the $100-per-barrel mark as traders anticipated additional supply entering the market.
The move, however, has drawn criticism from some Western leaders who argue that easing restrictions—even temporarily—could undermine the sanctions regime imposed on Russia following its invasion of Ukraine. Since 2022, the US and its allies have sought to limit Russia’s oil revenue through price caps and trade restrictions while keeping global supply stable.
Despite the waiver, US authorities emphasized that broader sanctions on Russian energy exports remain in place and that the exemption will expire after the 30-day window unless renewed. Officials said the step reflects the complex balance between maintaining pressure on Moscow and preventing instability in the global energy market during the ongoing geopolitical crisis.
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