U.S. Extends Short-Term Waiver for Russian Oil Through May 16

The U.S. Treasury on Friday extended a license allowing the handling, transfer and sale of Russian oil and petroleum products already loaded on vessels through May 16. The authorization covers cargoes loaded on or before April 17 and replaces an earlier 30-day waiver. It excludes transactions tied to Iran, Cuba and North Korea.

Treasury officials say the waiver aims to ease supply and affordability pressure on low-income importers that faced disruptions in the Gulf. European Trade Commissioner Maros Sefcovic raised the issue with Treasury Secretary Scott Bessent, asking why restrictions were being loosened while the war in Ukraine continues. Sefcovic told reporters he understood the exception would not be repeated and that it was granted to address severe needs in several lower-income countries, adding: “My clear understanding was that this will not be repeated in the future, and it was also done because several countries with the lower incomes have been in an extremely… difficult situation.”

Bessent described similar reasoning to members of Congress, saying requests for help emerged during the IMF and World Bank spring meetings. A Treasury spokesperson said the authorization is temporary and intended to keep crude moving and prevent sharp price spikes.

The White House eased parts of its Russia oil restrictions in early March after the Strait of Hormuz was largely closed for a period following a series of strikes. U.S. officials have emphasized the waiver is time-limited and applies only to cargoes already at sea rather than a broader rollback of sanctions. Lawmakers and European officials criticized the extension, saying it weakens pressure on Moscow while fighting continues in Ukraine.

The license has not restored full Russian crude exports. Ukrainian forces have used long-range strikes since March 21 to damage Russian port and energy infrastructure, disrupting loading points and transfers to tankers. President Volodymyr Zelenskyy said those strikes cost Russia at least $2.3 billion in oil revenue in March.

Ukraine’s foreign intelligence service cited industry data showing Russian transshipments fell by about 300,000 barrels a day in March and flows of refined products dropped roughly 200,000 barrels a day. Analysts and industry sources estimate Russia cut crude production by between 300,000 and 400,000 barrels a day in April.

Thomas Nilsson, head of Sweden’s military intelligence, said Russia would need oil prices to stay above $100 a barrel for the rest of the year to help cover its budget deficit.

U.S. officials say the license responds to short-term supply and affordability concerns for vulnerable importers and does not represent a change in broader sanctions policy. European leaders have requested assurances that similar exceptions will not become routine while the conflict in Ukraine continues.