The administration of US President Donald Trump has decided not to renew licenses that allowed temporary operations for the sale of Russian crude oil. This decision effectively ends the period during which Washington eased sanctions on certain volumes of Russian oil, allowing Moscow to conduct export operations that would otherwise be prohibited by the sanctions regime.
This is reported by Finway
Reasons for canceling exemptions and allies’ reactions
Earlier in March and April, the Trump administration granted short-term exemptions for part of the Russian oil that was already on tankers; however, after these terms expired, the decision was made not to renew the licenses. It was noted that such exemptions elicited mixed reactions among US European partners, who emphasized the importance of sanctions in reducing Russia’s oil export revenues and limiting its ability to finance the war against Ukraine.
“Critics say that easing sanctions has enriched Moscow, especially amid rising oil prices.”
Parallels with restrictions on Iranian oil
In April, the Trump administration also decided not to extend another exemption that allowed the purchase of certain volumes of Iranian crude oil. Treasury Secretary Scott Bessent confirmed the US intentions to abandon general licenses that permitted temporary sales of both Russian and Iranian oil. At the same time, after the announcement of this decision, the exemption for Russian oil was still in effect for several days, but it was eventually revoked.
Thus, the US is returning to a stricter sanctions regime against Russia, aiming to cut off revenue streams from oil sales that are strategically important for financing military actions against Ukraine.