US Treasury Secretary Scott Bessent confirms extension of sanctions exemption for Russian oil for another month

The U.S. Department of the Treasury will extend for one more month the sanctions exemption allowing the sale of Russian oil already loaded onto tankers.

According to Ukrinform, Bessent announced this on Monday on the social media platform X.

According to Bessent, the Treasury Department's Office of Foreign Assets Control is issuing a temporary 30-day general license to allow the most vulnerable countries temporary access to Russian oil currently stranded at sea.

"This general license will help stabilize the physical crude market and ensure oil reaches the most energy-vulnerable countries. It will also help reroute existing supply to countries most in need by reducing China's ability to stockpile discounted oil," Bessent said.

He added that the Treasury Department would work with vulnerable countries "to provide specific licenses as needed."

As Politico notes, this is the second time Bessent has extended the exemption. In April, he ruled out extending it after the first 30 days expired, but changed his position a few days later and granted an extension through May.

Bessent defended his change of position before lawmakers during hearings last month, saying that more than 10 countries that are among the most vulnerable and poorest in terms of energy access had appealed to him to extend the exemption.

"If we had not done that sanctions relief, [oil prices] might have been at $150 [a barrel]," Bessent said during the hearing. He stressed that Russia is earning less than it would have if prices had risen even higher, while American consumers are also paying lower prices at gas stations.

As Ukrinfrom previously reported, Sujata Sharma stated that India purchases Russian oil regardless of U.S. sanctions exemptions.

Photo: Office of the President of Ukraine