US Treasury secretary rules out new extension of Russian oil waiver

US Treasury Secretary Rules Out Further Extension of Russian Oil Waiver

US Treasury Secretary Scott Bessent said Washington has no plans to renew the waiver that permits purchases of Russian oil and oil products currently at sea, according to an interview with The Associated Press reported by TASS.

"I wouldn't imagine that we'd have another extension. I think the Russian oil on the water has been largely sucked up," Bessent told the AP.

His comments come amid a series of temporary licenses issued by the Treasury's Office of Foreign Assets Control (OFAC) that have allowed limited transactions involving Russian energy. On March 12, the Treasury lifted sanctions on operations for the sale of Russian oil and oil products loaded onto ships before that date. That permit expired on April 11. A subsequent license, published on April 17, permits the sale, transport, and unloading of Russian-origin oil loaded onto tankers before April 17, valid until May 16.

Bessent also indicated that the Treasury would not issue a new general license allowing purchases of Iranian oil loaded on tankers. "Not the Iranians," he said. "We have the blockade, and there's no oil coming out."

This is not the first time Bessent has signaled the administration's stance. At a White House briefing on April 15, he said Washington had no plans to extend exemptions from sanctions on Russian and Iranian oil on tankers at sea. The April 17 license, which came two days later, was seen by some as a partial reversal, but Bessent's latest remarks clarify that no further extensions are expected.

Russia's reaction has been cautious. Deputy Foreign Minister Alexander Pankin, asked about the possibility of another US extension, said Moscow always operates on a worst-case scenario. "We always expect that nothing good will happen. If something good happens, we say 'Thank you,'" he told reporters. Pankin suggested that Russia's role in the global market and the potential consequences for the US energy sector and American customers are factors in Washington's decision-making. "We are a necessary part of the market; besides, our exclusion will entail consequences for the American energy sector, for American customers," he said.

The evolving sanctions regime reflects the complexity of balancing energy market stability with geopolitical objectives. The latest license, which expires on May 16, leaves a narrow window for transactions involving Russian oil already in transit. Buyers and traders are now assessing the impact of a potential end to such waivers, which could tighten global supply and affect prices.

While the current license allows transactions until mid-May, Bessent's statement suggests that no further reprieves are planned. This applies not only to Russian oil but also to Iranian oil, where the US maintains a blockade. Observers will be watching whether the May 16 deadline passes without another extension, and how Russia and other market participants respond.

For now, the administration's position is clear: the temporary waivers were intended to ease the transition away from sanctioned energy, and that process is nearing its end.