The administration of US President Donald Trump has decided to extend the exemption that allows countries to buy sanctioned Russian oil and oil products transported by tankers for another month. The decision, which extends the exemption until May 16, drew criticism from US allies and US lawmakers. They say such a move eases pressure on Moscow at a time when the war in Ukraine continues. The previous exemption, which was valid for 30 days, expired on April 11.
- Donald Trump’s administration has extended an exemption for the purchase of sanctioned Russian oil.
- The exception allows tankers to import Russian oil until the sixteenth of May.
- US allies and several lawmakers say the move eases pressure on Moscow.
- The US Treasury justifies the exception by trying to regulate global energy prices.
- World oil prices fell by around nine percent after the reopening of Hormuz.
According to the US Treasury Department, the exemption does not apply to transactions with Iran, Cuba and North Korea. Finance Minister Scott Bessen announced a few days ago that Washington does not plan to renew the exemption for Russian oil or Iranian oil, which expires this Sunday. Still, the administration decided to extend the exemption for Russian oil, which the ministry says is part of an effort to regulate global energy prices.
Criticism of allies
The US government’s decision comes at a time when the West is working hard to limit Russia’s income, which could be used to finance the war against Ukraine. The President of the European Commission, Ursula von der Leyen, expressed her disapproval of the easing of sanctions against Moscow and emphasized that the current situation requires a tightening of measures. According to Reuters, the extension of the exemptions could weaken the West’s unified stance towards Russia and cause tension between Washington and its allies.
However, a spokesman for the US Treasury defended the move, saying that the goal is to ensure the availability of oil for countries that need it. The first exception will allow the release of one hundred million barrels of Russian oil, which corresponds to almost daily world production. According to Kirill Dmitriev, special envoy of the Russian president for foreign investments, this volume can significantly affect the global energy market.
Fall in oil prices
There was a significant drop in oil prices on world markets on Friday, which fell by approximately nine percent. The development is linked to Iran’s temporary reopening of the Strait of Hormuz, which eased fears of disruptions to energy supplies. Nevertheless, the conflict in the Middle East has already caused significant damage to oil and gas facilities in the region, which has a negative impact on global energy stability.
Washington’s decision to extend the exemption for Russian oil thus comes at a time when the world is facing significant challenges in the field of energy security. Critics warn that this move could have long-term consequences for geopolitical relations and Western unity on the issue of sanctions against Russia.
