Trump declines the EU’s request to sanction Russia’s oil as the US extends the waiver

Trump declines the EU’s request to sanction Russia’s oil as Washington keeps a temporary waiver in place to maintain global supply stability

ContentsUS extends waiver amid supply concernsEU pressure grows as geopolitical tensions persistUkraine strikes weaken Russia’s oil revenuesThe decision allows limited handling of sanctioned Russian crude already loaded on vessels while tensions over Ukraine continue. Officials say the move reflects pressure from lower-income nations facing energy shortages during ongoing geopolitical disruptions.

US extends waiver amid supply concerns

The US Treasury Department extended a short-term waiver covering Russian oil cargoes loaded by April 17, with validity through May 16. This decision replaces an earlier 30-day exemption that expired on April 11 and permits buyers to process shipments already at sea. However, the authorization excludes transactions linked to Iran, Cuba, or North Korea, showing that the broader sanctions policy remains intact.

European officials questioned the move, with Trade Commissioner Maros Sefcovic raising concerns directly with US Treasury Secretary Scott Bessent. Washington responded that the waiver addresses urgent needs in countries heavily dependent on imported oil. These nations faced supply disruptions after the Strait of Hormuz became restricted during heightened tensions involving Iran.

EU pressure grows as geopolitical tensions persist

Sefcovic stated that US officials described the waiver as a temporary measure unlikely to be repeated. He emphasized that several lower-income countries experienced severe energy strain, prompting emergency adjustments. Bessent also informed US lawmakers that requests for relief came during recent IMF and World Bank meetings, reinforcing the supply-driven rationale.

The US initially relaxed parts of its Russia oil restrictions in early March after Iran blocked key shipping routes following military actions involving the US and Israel. Oil prices surged above $100 per barrel, increasing global supply concerns. The extension of the waiver reflects efforts to prevent further price spikes while negotiations with Iran continue.

Ukraine strikes weaken Russia’s oil revenues

Despite the waiver, Russia has not fully benefited from elevated oil prices due to ongoing Ukrainian strikes on energy infrastructure. Since late March, Ukraine has targeted ports and loading facilities to disrupt exports and limit revenue flows. President Volodymyr Zelenskyy reported losses of at least $2.3 billion in oil income during March alone.

Data from industry sources showed a decline of 300000 barrels per day in crude transhipments and a 200000-barrel drop in refined product flows. Reports indicate that exports could fall to their lowest levels since 2023, with production cuts ranging from 300,000 to 400,000 barrels per day in April. Analysts note that Russia would need sustained high oil prices to offset these financial pressures.