Trump declines EU's request to sanction Russia's oil

Trump’s Treasury Department has kept a short-term waiver for Russia oil in place after the EU questioned why Washington was easing pressure on Moscow while the war in Ukraine is still draining lives, money, and fuel routes.

European Trade Commissioner Maros Sefcovic said he raised the issue on Friday with US Treasury Secretary Scott Bessent, after Washington allowed more deliveries and sales of sanctioned Russian crude already sitting on ships.

The new Treasury license covers Russian oil and petroleum products loaded on vessels as of April 17. It runs until May 16 and replaces an earlier 30-day waiver that expired on April 11.

The permission does not apply to deals tied to Iran, Cuba, or North Korea. So this is not a clean sanctions retreat, but it still gives buyers room to handle Russia barrels at sea.

EU officials push Bessent as Washington keeps Russia oil cargoes flowing through May 16

Sefcovic told reporters that US officials said the relief was tied to poorer countries that depend heavily on imported oil. Those countries were said to be under serious pressure after the Strait of Hormuz became largely blocked during the shaky ceasefire between the US and Iran.

His comment was direct. “My clear understanding was that this will not be repeated in the future, and it was also done because several countries with the lower incomes have been in an extremely… difficult situation,” Sefcovic said.

Bessent gave senators a similar reason this week. He said the waiver was extended for another 30 days after several exposed countries asked Washington for help. Those requests came during the IMF and World Bank spring meetings last week.

The US first paused parts of its Russia oil restrictions in early March, after Iran closed the Strait of Hormuz to shipping. Iran did that after US and Israeli strikes. Washington’s aim was to keep crude supply moving and stop prices from running harder after the Gulf war pushed oil above $100 a barrel.

On April 13, the US renewed the waiver until May 16. Then, on April 19, the Trump administration renewed permission for countries to buy sanctioned Russian oil at sea for roughly one more month. That came even as lawmakers accused the administration of being too soft on Moscow.

The Treasury Department said the reason was supply. “As negotiations (with Iran) accelerate, Treasury wants to ensure oil is available to those who need it,” a Treasury spokesperson said.

That answer landed awkwardly because Bessent had said only two days earlier that Washington would not renew the Russian oil waiver. He also said the US would not extend a separate Iranian oil waiver that was set to expire on Sunday.

Ukraine hits Russia oil sites as Moscow loses export volumes and revenue

The waiver has not handed Russia the kind of payday Moscow may have wanted. Ukraine has been hitting Russian port and energy infrastructure since March 21, using long-range strikes to disrupt loading points and slow the flow of oil onto tankers.

Kyiv’s goal is simple enough. If Russia cannot load barrels, it cannot fully cash in when crude prices jump. That matters because oil prices climbed above $100 a barrel during March and April as the Gulf war squeezed global supply fears.

Ukrainian President Volodymyr Zelenskyy said the strikes cost Russia at least $2.3 billion in oil revenue in March. “In March alone, Russia’s oil revenue losses from our long-range capabilities are estimated at no less than $2.3bn. In just one month. We continue this work in April,” Volodymyr said in a video address on Sunday, April 19.

Ukraine’s foreign intelligence service cited S&P Global Platts figures showing Russia oil transhipments fell by 300,000 barrels a day in March. Flows of refined products also dropped by 200,000 barrels a day.

April may have hurt Moscow even more. Russian business newspaper Kommersant said exports had dropped to “their lowest levels since the summer of 2024.” It also said, “By the end of the month, they could fall to their lowest since 2023.”

Reuters alleges that weak exports forced Russia to cut crude production by 300,000 to 400,000 barrels a day in April. 

Sweden’s military intelligence chief Thomas Nilsson told reporters recently that Russia would need oil to stay above $100 a barrel for the rest of the year just to cover this year’s budget deficit.

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