U.S. Waives Russian Oil Sanctions, Kyiv Warns It Fuels Moscow’s War Chest
Key Takeaways
- United States temporarily waived sanctions on Russian oil shipments for 30 days.
- The waiver aims to dampen high oil prices caused by the Iran war.
- Kyiv and critics warn the waiver will financially benefit Moscow without significantly lowering oil prices.
What the US did
The United States issued a short-term reprieve on sanctions for Russian oil already at sea, allowing deliveries loaded on tankers to proceed without U.S. penalties for 30 days.
"The U.S. is temporarily easing some sanctions on Russian oil shipments, reflecting global concerns over sharply higher crude prices due to supply shortages stemming from the Iran war," reported the Chicago Tribune, while Straight Arrow News stated, "The U.S. Department of Treasury temporarily lifted sanctions on Russian oil Thursday in an effort to dampen the impact of high oil prices amid the war in Iran."
Radio Free Europe/Radio Liberty described the move as a "temporary license issued by the United States" that Kyiv and others have been assessing for its effects.
US rationale
Washington framed the measure as narrowly tailored and aimed at calming volatile energy markets, with Treasury officials presenting it as a temporary, limited exemption.
Chicago Tribune quoted Treasury Secretary Scott Bessent describing the step as part of President Donald Trump’s effort to take "decisive steps to promote stability in global energy markets" and to "keep prices low," and Straight Arrow News repeated administration language that the exemption "applies only to oil already in transit and will not provide significant financial benefit to the Russian government."
German and French leaders questioned that rationale, saying there was "currently a problem with prices but not with supply" and that the move was "in no way" justified, per Radio Free Europe/Radio Liberty.
Kyiv's warning
Kyiv and other critics warned the waiver risks bolstering Moscow’s finances and extending its capacity to wage war.
The Chicago Tribune reported Ukrainian President Volodymyr Zelenskyy saying the action "does not help peace" and that "This easing alone by the United States could provide Russia with about $10 billion for the war."
Radio Free Europe/Radio Liberty relayed a Ukrainian diplomatic view that Kyiv "believes the US decision will not help stabilize the market and will instead allow Russia to wage war for longer," and Straight Arrow News noted "vocal critics who say it will help Russia without significantly lowering oil prices."
Market impact
The waiver applies specifically to cargo already loaded at sea and produced a mixed market reaction: prices briefly eased but remained high.
Chicago Tribune noted that "U.S. sanctions will not apply for 30 days on deliveries of Russian oil that’s been loaded on tankers as of Thursday, U.S. Treasury Secretary Scott Bessent said on X," and that "The price of international benchmark Brent crude eased after the announcement but soon rose again, breaking through $100 to trade at $103.24 per barrel as of 1800 GMT (2 p.m. EDT) Friday."
Straight Arrow News gave the same timeline, saying "The U.S. is lifting sanctions on Russian oil already at sea for 30 days until April 11."
Radio Free Europe/Radio Liberty also recorded Kyiv’s assessment that the temporary license "may help Russia to deal with 'significant pressure' on its budget but added it won't largely impact the situation."
Geopolitical fallout
European leaders voiced alarm that the U.S. move could strengthen Russia and complicate regional security, even as Moscow welcomed the relief for markets.
“Kyiv has warned that a move by the United States to temporarily lift sanctions on Russian oil to stabilize the global energy markets amid its military campaign against Iran could add around $10 billion to the Kremlin's war chest to use against Ukraine”
Radio Free Europe/Radio Liberty quoted Chancellor Friedrich Merz saying Germany "was not notified of the decision prior to its announcement," and recording that Macron said it was "in no way" justified, while European Council President Antonio Costa called the decision "very concerning" and warned it could "give Russia more resources to continue its war against Ukraine."
The Chicago Tribune reported Kremlin spokesman Dmitry Peskov saying the move would help stabilize markets and that it was impossible to do so "without significant volumes of Russian oil," and Straight Arrow News described the waiver as a "significant departure from U.S. policy over the past several years."