US extends Russian oil waiver by 30 days

WASHINGTON:

The US Treasury on Monday extended by 30 days its sanctions waiver for Russian oil cargoes already at sea, as global energy prices continue to surge due to the Iran war.

The latest "temporary 30-day general license" will "provide the most vulnerable nations with the ability to temporarily access Russian oil currently stranded at sea," Treasury Secretary Scott Bessent said in a social media post.

Monday's announcement is the second time US authorities have extended the temporary measure, which is meant to address oil supply shortages sparked by the US-Israel war on Iran.

Iran's retaliatory action has targeted US regional allies and virtually blocked the Strait of Hormuz, through which roughly a fifth of the world's oil and gas supplies normally pass.

Global oil prices have spiked since the start of the war, with US consumers feeling the pinch of gasoline costs that are more than 50 percent higher than when the war began.

The United States first issued a sanctions waiver on Russian oil cargoes that were at sea in March.

The new sanctions waiver is effective until 12:01 am US Eastern time on June 17, according to the general license issued by the Treasury.

The sanctions waiver has been criticized in the past by Ukrainian President Volodymyr Zelensky, whose country has been locked in war with Russia since its 2022 invasion.

Bessent said the extension would "provide additional flexibility" and "will help stabilize the physical crude market and ensure oil reaches the most energy-vulnerable countries.

As with previous waivers, the measure does not authorize transactions involving individuals or companies from Iran, North Korea, Cuba and Russian-occupied regions of Ukraine, the Treasury said. AFP