ANDOYA, NORWAY/ MOSCOW: The United States issued a 30-day waiver for countries to buy sanctioned Russian oil and petroleum products stranded at sea, drawing criticism from Germany and other European allies on Friday but approval from Moscow.
US Treasury Secretary Scott Bessent said the waiver was a bid to stabilise global energy markets roiled by the Iran war, but it risks complicating Western efforts to deprive Russia of revenue for the war in Ukraine.
Oil prices eased on Friday morning in Asia after the US waiver announcement, which, according to Russia’s presidential envoy Kirill Dmitriev, would affect 100 million barrels of Russian crude, equal to almost a day’s worth of global output.
German Chancellor Friedrich Merz said any move to ease Russia sanctions was wrong, while his Economy Minister Katherina Reiche said the decision was probably driven by US domestic pressure.
“Six members of the G7 expressed a very clear opinion that this was not the right signal. We then learned this morning that the American government has apparently decided otherwise,” Merz told a press conference in Norway.
“Again, we believe this is wrong. There is currently a price problem but not a quantity problem. And therefore, I would like to know what other motives led the American government to make this decision,” he said.
Norway’s Prime Minister Jonas Gahr Stoere also said that energy sanctions on Russia should not be eased, echoing comments earlier this week from French President Emmanuel Macron and European Commission President Ursula von der Leyen.
Kremlin spokesman Dmitry Peskov told reporters on Friday the US move was aimed at stabilising world energy markets.
“In this respect, our interests coincide,” Peskov said.
“… the situation is fraught with the risk of a growing crisis in the global energy sector… without significant volumes of Russian oil, market stabilisation is impossible,” he added.
According to data analytics firm Vortexa, around 7.3 million barrels of Russia-originated oil have been in floating storage, while 148.6 million barrels have been in vessels in transit.
Up to 420,000 metric tons of diesel and gasoil are currently in floating storage and could be available for sales in the market, according to LSEG shiptracking data and trade sources.
Washington’s move comes nearly two weeks after the US and Israel began their strikes on Iran in an aerial war that has paralyzed shipping through the vital Strait of Hormuz.
The 32-nation International Energy Agency said on Thursday that the war in the Middle East was creating the biggest oil supply disruption in history.
Vessel tracking service Kpler said on Friday the US waiver was unlikely to create meaningful new demand.
“Most cargos already appear to be placed with Asian buyers, particularly India. Instead, the measure mainly allows Russian barrels already in transit to complete their voyage and discharge,” it said.
The licence issued by Washington on Thursday authorises the delivery and sale of Russian crude oil and petroleum products loaded on vessels on or before March 12 and valid through midnight Washington time on April 11.
The move reflects White House worries that the surge in global oil prices will hurt US businesses and consumers ahead of the November midterm elections, when Trump’s fellow Republicans hope to retain control of Congress.
The sanctions relief took place after a call between Trump and Russian President Vladimir Putin on March 9 and a subsequent visit to the US by Dmitriev to discuss the current energy crisis with a US delegation that included Trump’s special envoy Steve Witkoff and Trump’s son-in-law Jared Kushner.
Following the announcement from the Treasury, Thailand’s Deputy Prime Minister Phipat Ratchakitprakarn said his country was ready to purchase Russian crude and was preparing for talks.
Japan also said on Friday it would now consider whether to buy Russian crude.
American Dollar Exchange Rate