U.S. Treasury Issues License Allowing Sale of Russian Oil Already at Sea Until April 11 to Stabilize War-Hit Energy Markets
The United States has issued a temporary sanctions authorization allowing the sale and delivery of Russian crude oil and petroleum products that were already loaded on vessels before March 12, a move Washington says is intended to stabilize global energy markets as the widening West Asia war disrupts supply chains.
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| File Photo: BRICS Info |
The authorization will remain valid until 12:01 a.m. EDT on April 11, 2026, effectively creating a one-month window for cargoes already at sea to reach buyers.
The measure applies even to cargoes carried on vessels that may otherwise fall under U.S. sanctions regimes, provided the oil was already loaded before the cutoff time. Treasury officials described the authorization as a limited mechanism designed to prevent stranded cargoes from worsening the ongoing energy disruption triggered by the war involving Iran, Israel and the United States.
Treasury Secretary Scott Bessent said the authorization was part of broader efforts by the Trump administration to stabilize markets and prevent price spikes during the conflict.
“President Trump is taking decisive steps to promote stability in global energy markets and working to keep prices low as we address the threat and instability posed by the terrorist Iranian regime,” Bessent said, adding that the Treasury was providing “a temporary authorization to permit countries to purchase Russian oil currently stranded at sea.”
Bessent stressed that the authorization is “narrowly tailored” and “short-term,” arguing that it would not significantly benefit Moscow because Russia’s energy revenues are largely derived from taxes levied at the point of extraction rather than from the sale of already-produced cargoes.
According to the text of the license, the permitted transactions include activities “ordinarily incident and necessary to the sale, delivery, or offloading” of such cargoes. These include operational actions required to ensure the safe handling of vessels and crews, such as “safe docking and anchoring,” crew safety measures, emergency repairs, environmental mitigation,” and maritime services including vessel management, bunkering, insurance, piloting and salvage.
The authorization also clarifies that the Russian crude and petroleum products covered by the license may include cargoes produced by entities sanctioned under the Russian Harmful Foreign Activities Sanctions Regulations or the Ukraine-/Russia-Related Sanctions Regulations, provided the oil had already been loaded before the March 12 deadline.
However, OFAC made clear that the license does not authorize any broader transactions involving Iran or the Iranian government, nor does it waive other sanctions authorities not explicitly referenced in the license.
The decision comes as global energy markets are already under severe strain following the effective closure of the Strait of Hormuz, a key shipping route through which roughly a fifth of the world’s oil supply normally flows. The war has disrupted shipping, forced rerouting of tankers, and driven sharp price volatility across crude and liquefied natural gas markets.
From Washington’s perspective, the license attempts to prevent an additional shock — large volumes of Russian oil becoming stranded at sea due to sanctions restrictions just as supply routes from the Gulf are under threat.
The move immediately drew geopolitical reactions. Kirill Dmitriev, head of Russia’s sovereign wealth fund and special envoy for investment cooperation, said the decision underscored Russia’s role in stabilizing global energy markets, writing that “Russian energy is indispensable to easing the world’s largest energy crisis.”
At the same time, the step stands in tension with the European Union’s stance. Just a day earlier, European Commission President Ursula von der Leyen warned that purchasing Russian oil during the current crisis would be a “strategic blunder” for Europe.
This shows ongoing divisions among Western allies over how to balance sanctions enforcement with energy security during the expanding Middle East conflict.