US extends sanctions waiver on Russian crude oil again

The US Department of Treasury (DoT) has extended a sanctions waiver for Russian crude to be sold to global markets for another 30 days.

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The announcement comes days after the previous 30-day waiver for Russian crude – primarily sold to India and China – expired at 12.00 ET (16.00 GMT) on 16 May.

The move marks the second instance in which the US treasury department has allowed the sanctions waiver to expire before extending it again.

US Secretary of the Treasury Scott Bessent said this waiver extension will allow refiners to purchase crude oil and petroleum products of Russian origin.

“This general license will help stabilize the physical crude market and ensure oil reaches the most energy-vulnerable countries,” Bessent said.

The announcement comes amid escalating tensions in the Middle East, with the US Navy continuing its blockade of the Strait of Hormuz.

The waiver excludes transactions involving Iran, Cuba and North Korea, the US treasury department said earlier.

According to Washington, the measure is unlikely to deliver meaningful financial gains to the Russian government, as it only allows transactions involving oil already at sea.

The latest extension will allow sales until 17 June, two analysts from ING Bank said. “The [waiver] extension will be welcomed by Asian buyers, who are most exposed to the ongoing disruptions in the Middle East,” they added.

By Aparupa Mazumder

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