US to Target Future Russian Oil Sanction Waivers to Specific Countries

Washington, which usually hinders transactions involving Russian oil to punish Moscow for invading Ukraine, has since March put in place a waiver to moderate the surge in prices following the war in the Middle East. It allows most countries (excluding Iran and Cuba, in particular) to purchase Russian oil already at sea. This waiver has been extended several times. The latest extension runs until June 17. "Many of the most vulnerable countries have asked me to extend the waiver," said Secretary Scott Bessent during a hearing before the House of Representatives. "I strongly lean towards, if there are to be further waivers, they should designate specific countries rather than being general," added the Treasury Secretary. The sanctions aim to dry up the Kremlin's oil revenues and thus limit its ability to finance the war in Ukraine. The European Union has criticized the US waiver, saying it was not appropriate to ease the pressure on Russia. Russia "has only recorded a very slight increase in its revenues due to the waivers," Scott Bessent said Thursday. China continued before that to import Russian oil, he stressed. "Now the oil can go to our allies." Global energy markets have been disrupted since the end of February when the United States and Israel launched an offensive against Iran. Tehran controls the Strait of Hormuz, using it as a strategic lever. Ships are still passing through in dribs and drabs, and Tehran demands payment of a transit fee.