The United States Treasury Department has announced a new temporary waiver that permits the sale and transportation of Russian oil previously sanctioned, a decision made amid efforts to stabilise energy markets impacted by ongoing conflicts in West Asia. This waiver, granted on Friday, April 17, extends the authorisation for countries to purchase Russian crude oil and petroleum products that were loaded onto vessels prior to its issuance.

This latest licence will remain valid until May 16, replacing the earlier 30-day exemption that expired on April 11. According to the Treasury’s announcement, transactions necessary for the sale, delivery, or offloading of Russian oil loaded onto vessels are permitted under specific conditions, although strict exclusions concerning dealings with Iran, Cuba, and North Korea continue to apply.

It has been reported that transactions involving persons located in or organised under the laws of Iran, North Korea, Cuba, and certain regions of Ukraine remain prohibited under this general licence, reflecting ongoing geopolitical complexities.

Context and Implications of the Waiver

The development follows remarks from United States Secretary of the Treasury Scott Bessent, who emphasised that the US will not renew the general licence permitting limited transactions related to Russian and Iranian oil. Bessent stated that the previous waiver catered to oil already on the water prior to March 11, and noted that such transactions would no longer be applicable moving forward.

Kirill Dmitriev, a representative of the Russian government, indicated that the initial waiver could potentially release approximately 100 million barrels of crude, which equates to nearly one day’s worth of global oil production. This is significant as it highlights the scale of resources that could influence global oil supply dynamics.

However, the issuance of such waivers has drawn criticism from various Western leaders. Ursula von der Leyen previously expressed concerns that these waivers might undermine sanctions aimed at limiting Russia’s financial capabilities in relation to its military activities in Ukraine.

Market Reactions and Ongoing Regional Tensions

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