Washington extends sanctions waiver on Russian crude oil

The US Department of Treasury (DoT) has extended a sanctions waiver for Russian crude to be sold to global markets until 16 May 12:00 ET (4:00 GMT).

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The announcement comes days after Washington said it will not extend existing sanctions waiver for Russian crude – primarily sold to India and China. The previous 30-day waiver expired on 11 April.

Indian media outlets have reported that this waiver extension will allow Indian refiners to purchase crude oil or petroleum products of Russian origin.

The new waiver excludes transactions involving Iran, Cuba and North Korea.

The announcement comes amid escalating tensions in the Middle East, with the US Navy capturing another Iranian vessel trying to undermine Washington’s blockade of the Strait of Hormuz.

“As negotiations [with Iran] accelerate, [US] Treasury wants to ensure oil is available to those ⁠who need it,” Reuters cited a DoT spokesperson.

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

Russian President Vladimir Putin's special ​envoy to the US Kirill Dmitriev ⁠said the waiver extension will affect another 100 million bbls of Russian oil, bringing the total volume affected by both waivers to 200 million bbls, Reuters reported.

By Aparupa Mazumder

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