US Treasury Secretary Scott Bessent defended a 30-day extension of a sanctions waiver that permits sales of Russian oil already loaded at sea, saying the move responds to pleas from vulnerable, energy-dependent countries. The extension — effective through 12:01 a.m. (0401 GMT) on May 16 — follows an easing that expired on April 11 and was announced last Friday. Critics, including Ukrainian President Volodymyr Zelensky, argue the relief risks funding Moscow's war, while officials say it aims to lower energy costs amid disruptions tied to regional tensions.
Treasury Chief Defends 30-Day Extension Of Russian Oil Waiver Amid Soaring Energy Prices
US Secretary of Treasury Scott Bessent said the temporary extension of Russian oil sanctions relief would lower energy prices (SAUL LOEB)(SAUL LOEB/AFP/AFP)
US Treasury Secretary Scott Bessent on Wednesday defended the administration's sudden reversal to temporarily extend a sanctions waiver permitting the sale of Russian oil that had already been loaded at sea. The one-month relief, announced last Friday, is intended to ease sharply rising energy costs and runs through 12:01 a.m. (0401 GMT) on May 16.
What Happened
The waiver allows purchases of crude oil and petroleum products that were loaded onto vessels by the Friday deadline. It prolongs an earlier easing of sanctions that expired on April 11. The move came just two days after Bessent had told reporters Washington would not renew the waiver, prompting questions about the administration's change of course.
Why Officials Say They Acted
Speaking at a Senate Appropriations subcommittee hearing, Bessent said the policy shift followed appeals from "more than 10 of the most vulnerable and poorest countries in terms of energy" who approached him on the sidelines of the International Monetary Fund and World Bank spring meetings in Washington. Officials argue the temporary relief is designed to lower fuel costs and prevent economic strain in energy-dependent nations.
Criticism And Risks
Ukrainian President Volodymyr Zelensky condemned the extension over the weekend, saying it provides revenue to Moscow that could help sustain its war in Ukraine. Critics warn that temporary waivers can complicate efforts to cut off oil revenues Russia needs to finance military operations.
Bessent also rejected claims that the waivers were intended to enrich Tehran, saying the objective was to reduce energy prices. He noted that following US-Israeli strikes since February 28, Iran effectively restricted traffic through the Strait of Hormuz—a crucial shipping route—which contributed to recent spikes in oil and gasoline prices.
Measures To Stabilize Markets
Bessent added that many US Gulf allies and several Asian countries have requested foreign-exchange swap lines to stabilize dollar funding markets. "Swap lines, whether from the Federal Reserve or the Treasury, are intended to maintain order in the dollar-funding markets and to prevent a disorderly sale of US assets," he told lawmakers.
The 30-day waiver extension underscores the administration's attempt to balance short-term energy and economic stability against longer-term efforts to limit Russia's access to oil revenue.
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