President of the European Council António Costa expressed concerns regarding the recent actions of the United States concerning Russian oil, emphasizing their impact on European security. He believes that the lifting of sanctions by Washington could jeopardize the stability of the region and enhance Russia’s capabilities to continue its war against Ukraine.
This is reported by Finway
Consequences of the US Decision for European Security
António Costa stressed that increasing economic pressure on Russia is a key factor in forcing it to engage in serious peace negotiations. However, he believes that easing sanctions creates more favorable conditions for the Russian Federation, as it expands its financial resources for waging an aggressive war.
“The unilateral decision by the US to lift sanctions on Russian oil exports raises concerns, as it affects European security.”
Ukrainian diplomats also reacted to the US decision, noting that it is unlikely to help stabilize the energy market. Instead, they believe that allowing trade in Russian oil will only prolong Russia’s ability to conduct military operations and contribute to the destabilization of the Middle East, considering the support Russia provides to the Iranian regime.
Temporary Easing of Sanctions and Market Reaction
On March 12, the US Treasury allowed temporary shipments of crude oil and petroleum products from Russia that were loaded onto vessels before that date. The license will be valid until April 11. US Treasury Secretary Scott Bessent explained that this temporary measure would not lead to significant financial inflows for the Russian budget.
The European Commission urged Washington not to deviate from previously agreed restrictions on the import of Russian oil. Meanwhile, the Kremlin characterized the US decision as an attempt to stabilize the market, noting that in this situation, the interests of Moscow and Washington “coincide situationally.”
The decision to ease sanctions was made against the backdrop of rising oil prices, which exceeded $100 per barrel on March 12. This occurred due to a series of attacks on tankers in the waters of the Persian Gulf and the closure of key oil terminals. Experts estimated that over 100 million barrels of Russian oil have accumulated at sea due to the sanctions.
The United States had previously banned the import of Russian oil and threatened high tariffs on countries that continued to purchase it, aiming to limit the funding of the Kremlin’s military actions. The decision regarding limited easing of sanctions has faced criticism from Democrats and some Republicans, who expressed concerns that any additional revenue from oil could be used to continue aggression against Ukraine.
Additionally, the US had already granted India a temporary 30-day license to purchase Russian oil that remained at sea due to restrictions. According to Bessent, the goal of this step is to avoid a shortage of oil in the global market without providing significant financial benefits to Russia.
Moreover, the market is experiencing tension due to military actions in the Middle East. Since late February, the US and Israel have been conducting strikes against Iran, while Tehran has responded with attacks on Israeli and American facilities in the Persian Gulf. The war has effectively paralyzed tanker movements through the Strait of Hormuz, through which a significant portion of the world’s oil exports passes.