WASHINGTON: The US government on Thursday temporarily eased sanctions on Russia to allow stranded Russian oil at sea to be sold to India.
The Treasury Department’s Office of Foreign Assets Control (OFAC) issued a Russia-related license titled “Authorizing the Delivery and Sale of Crude Oil and Petroleum Products of Russian Federation Origin Loaded on Vessels as of March 5, 2026 to India,” according to a Treasury statement.
The license permits transactions, including oil from vessels blocked under various sanctions regimes, through the end of April 3, 2026.
Treasury Secretary Scott Bessent said the waiver was issued “to enable oil to keep flowing into the global market.” He added on X that this short-term measure will not give substantial financial benefit to the Russian government, as it only covers oil already stranded at sea.
The sale to India is expected to “alleviate pressure caused by Iran’s attempt to take global energy hostage,” Bessent noted, despite India previously stating it would halt purchases of Russian oil under a US trade agreement.
This move comes after US President Donald Trump imposed sanctions last November on Russian oil majors Lukoil and Rosneft in response to Russia’s invasion of Ukraine. Those sanctions disrupted major buyers of Russian oil, prompting them to seek alternative suppliers.
Reports indicate that Russia has assembled a fleet of older oil tankers with opaque ownership to bypass sanctions from the US, European Union, and G7 nations following Moscow’s full-scale invasion of Ukraine in 2022.
Comment