US Temporarily Allows Sale of Russian Oil Stranded at Sea
The temporary license issued by the US Treasury Department to sell Russian oil that is already loaded on ships has provided a short-term relaxation of sanctions on Moscow’s energy exports.
The permit allows the sale of Russian crude oil and petroleum products that were transported before a specific cutoff date. The measure will remain in effect for 30 days, giving traders and buyers a limited window to complete transactions involving cargo that is currently at sea.
30-Day License for Russian Oil Already in Transit
The temporary permit issued by the US Treasury Department applies only to oil shipments that were loaded onto vessels before 12:01 a.m. Washington time on March 12.
Under the terms of the license, only oil that had already been loaded onto ships before the deadline can be sold. The authorization will remain valid until April 11, and the waiver does not cover any new shipments of Russian oil.
The policy adjustment comes at a time when global energy prices are rising due to increasing geopolitical tensions.
Treasury Secretary Scott Bessent said the move is narrowly targeted and unlikely to generate significant financial benefits for Moscow.
According to Bessent, the measure is a limited and short-term solution that applies only to oil already in transit and will not provide meaningful financial gains for the Russian government.
Energy Markets Under Pressure Amid Iran Conflict
The decision comes as global oil markets face growing pressure due to escalating tensions involving Iran and Israel.
An Iranian blockade of the strategically important Strait of Hormuz has disrupted roughly one-fifth of the world’s oil supply from reaching global markets. The strait is one of the most important energy shipping routes, connecting major Gulf producers to international buyers.
As supplies tighten and geopolitical tensions increase, oil prices have surged worldwide, forcing policymakers to consider temporary adjustments to existing sanctions policies.
Earlier Waiver Allowed India to Buy Russian Oil
This is not the first time the United States has temporarily eased sanctions related to Russian oil.
On March 5, the Treasury Department issued a similar 30-day waiver allowing Indian refiners to purchase Russian crude that had already been loaded onto tankers.
India, the world’s third-largest importer of crude oil, had earlier faced pressure from US President Donald Trump to reduce or halt purchases of Russian oil.
However, after the waiver was introduced, Indian buyers reportedly moved quickly to secure supplies. Reports suggested that around 30 million barrels of Russian oil were purchased in a single day.
Data cited by CNBC, based on trade analytics from Kpler, showed that Russian crude stored on tankers declined significantly.
By March 10, tanker-held Russian crude had dropped to 118.3 million barrels, compared with 132.9 million barrels at the end of February.
This sharp decline suggested that buyers were quickly securing available cargo, according to market analysts.
Analysts Say Russia Could Benefit From Iran War
Some geopolitical analysts believe Russia may indirectly benefit from the broader conflict in the Middle East.
Since the beginning of the US-Israel conflict involving Iran, rising energy prices have boosted revenues for major oil exporters, including Russia.
European Council President Antonio Costa warned that higher oil prices could strengthen Moscow financially.
In a recent speech, Costa said that so far there appears to be only one clear winner in the conflict: Russia. According to him, rising energy prices provide Moscow with additional resources to support its war against Ukraine.
Russian officials have also acknowledged increasing global demand for their energy resources.
Kremlin spokesperson Dmitry Peskov said Russia continues to remain a reliable supplier of oil, gas, and liquefied natural gas to international markets.
Meanwhile, energy analyst Igor Yushkov from the Financial University under the Government of the Russian Federation noted that tensions around the Strait of Hormuz are creating favorable conditions for Russia’s export revenues.
Analysts say that any disruption to Middle Eastern oil supplies tends to increase demand for alternative suppliers, including Russian energy.
