The US has temporarily lifted sanctions on the sale of Russian crude oil and petroleum products loaded on ships until March 12, according to a general license issued by the US Treasury Department.
The exemption is valid until April 11. It does not apply to transactions and activities related to Iran, the Iranian government, or goods and services of Iranian origin.
US Treasury Secretary Scott Besant described the license as one of several steps to strengthen the stability of global energy markets, which will increase the “global reach of existing supplies”.
“This narrowly targeted, short-term measure applies only to crude oil already in transit and will not provide a significant financial benefit to the Russian government, which receives the majority of its energy revenues from taxes levied at the point of production,” he wrote in his letter.
US Energy Secretary Chris Wright ruled out lifting sanctions on Russian oil on March 12.
The war in the Middle East and restrictions on traffic through the Strait of Hormuz have disrupted oil supplies and sent prices soaring of fuels. In response, the United States last week allowed India to buy Russian oil from tankers at sea. According to Reuters, the license is valid for 30 days.
At that time, Besant said that Washington was considering lifting sanctions on Russian oil stored at sea. Kirill Dmitriev, the special representative of the Russian president for investment and economic cooperation with foreign countries and head of the Russian Direct Investment Fund (RDIF), subsequently announced that he was discussing with the United States easing sanctions on Russian oil.
On March 10, shortly after a conversation with Russian leader Vladimir Putin, Trump announced that he planned to lift sanctions on the oil sectors of several countries in order to stabilize the energy market amid the conflict in the Middle East. He acknowledged that restrictions lifted to stabilize the oil market may not be reinstated.
The European Commission has urged the United States to comply with sanctions on Russian oil.
On March 11, Dmitriev held talks with Trump's special envoy Steve Witkoff and US President's son-in-law Jared Kushner in Florida. Dmitriev said that during the meeting they discussed projects to restore bilateral relations, as well as the current crisis in global energy markets.
According to the Russian president's special envoy, "Washington is beginning to better understand the ineffectiveness of sanctions against Moscow and the role of Russian energy in the global economy.".