US Treasury Reverses Course, Extends Russian Crude Waiver Amid Asian Pressure

In a sharp reversal, the US Treasury has renewed a critical sanctions waiver, allowing countries to purchase Russian oil already loaded on tankers at sea. The decision, announced just two days after Treasury Secretary Scott Bessent signaled a harder line, responds to urgent pressure from Asian nations facing severe energy cost spikes. The move underscores the administration's scramble to manage global supply disruptions without collapsing key energy markets.

The Treasury's Office of Foreign Assets Control issued General License 134B on April 17, authorizing transactions for Russian crude and petroleum products loaded onto vessels by that date. This new waiver, effective through May 16, directly replaces the previous license that expired on April 11. The abrupt policy shift highlights the tension between stated sanctions enforcement and the immediate economic pressures on US allies, who rely on these maritime cargoes to mitigate supply shocks.

The extension provides a temporary lifeline for buyers but signals ongoing volatility in energy sanctions policy. With negotiations over Iranian oil exports accelerating, Treasury aims to prevent a supply vacuum that could further destabilize markets. The reversal places the administration's strategy under scrutiny, revealing the complex balancing act between applying economic pressure on Russia and preventing collateral damage to the global economy.