U.S. Extends Waiver On Russian Oil Cargoes Amid Global Crude Supply Concerns

The U.S. government has extended by one month a sanctions waiver covering Russian oil shipments already at sea, according to an order issued by the U.S. Department of the Treasury on Monday.

The latest extension allows transactions involving Russian oil cargoes loaded before April 17 to continue until June 17 under revised licensing terms issued by the Office of Foreign Assets Control (OFAC).

Invest in Indian Markets and Unlock Future Potential With 5paisa!

Open Account Now

The Treasury Department stated that General License No. 134C replaces the earlier General License No. 134B, which had been issued on April 17 and expired on May 16.

The waiver extension comes at a time when global crude oil markets are facing supply uncertainty linked to tensions involving Iran and disruptions around the Strait of Hormuz, one of the world’s most important oil transit routes.

Temporary Relief For Oil Importing Countries

The U.S. had earlier granted temporary sanctions relief beginning March 5 to India for purchases involving Russian oil cargoes already in transit. Similar exemptions were later extended to several other countries.

The previous waiver period ended on April 11 before being renewed on April 17 for another month. The latest extension pushes the validity further until June 17.

India remains one of the largest buyers of Russian crude oil after Western sanctions altered global energy trade flows following the Russia-Ukraine conflict. Russian oil imports have helped Indian refiners secure discounted crude supplies over the past few years.

The latest waiver applies specifically to Russian oil cargoes that were already at sea before April 17. The order does not permit fresh transactions outside the specified conditions.

Restrictions Still Apply To Certain Regions

The Treasury Department clarified that the revised general license does not authorise transactions involving individuals, entities or joint ventures located in Iran, North Korea, Cuba or certain occupied regions of Ukraine.

The order maintains existing restrictions linked to broader U.S. sanctions policy while allowing limited operational flexibility for oil cargoes already in transit.

Global oil markets have remained volatile in recent weeks as geopolitical tensions in West Asia increased concerns around energy supply and shipping movements.

Crude Prices Remain Elevated

Brent crude oil price have held above the $100 per barrel mark due to uncertainties about oil flows from the Middle East region. Incidents close to the strait of Hormuz have put additional strain on the energy market and also added concerns for economies importing oil.

Increased price of crude oil have influenced not only inflation expectations but also have influenced foreign exchange markets across the globe.

The decision to extend the waiver offers a temporary solution as far as Russian oil deliveries are concerned.