Washington DC, May 18 — The US Treasury on Monday issued a temporary 30-day general license allowing the world’s most energy-vulnerable nations limited access to Russian crude currently stranded at sea, Treasury Secretary Scott Bessent said.
In a post on X, Bessent said the extension will give “additional flexibility” to countries in need and that the Treasury will work with them to provide specific licenses where required. He said the measure is intended to stabilize the physical crude market and ensure oil reaches nations with the greatest energy vulnerabilities. “It will also help reroute existing supply to countries most in need by reducing China’s ability to stockpile discounted oil,” he added.
The announcement follows the expiry of a prior 30-day waiver on May 16. That temporary exemption, first granted in March, permitted transit-bound cargoes to continue to buyers despite sanctions, helping buffer global fuel supplies. This marks the third similar extension since the West Asia conflict began on February 28.
India, one of the buyers affected by shifting waiver policies, said its purchases are driven by national interest and commercial considerations. Sujata Sharma, Joint Secretary (Marketing & Oil Refinery) at India’s Ministry of Petroleum & Natural Gas, said New Delhi has been buying Russian crude before the waiver, during the waiver, and after its expiry. She added that there is no shortage of crude supplies tied up for India and that waiver changes will not affect its fuel availability.
Energy markets have remained volatile amid a series of strikes linked to the wider West Asia crisis, raising concerns about disruptions to global energy distribution. The Treasury’s short-term license aims to reduce immediate supply shocks while governments and regulators consider longer-term responses.
Report via ANI.
