US issues 30-day sanctions waiver for purchase of Russian oil at sea

ANDOYA, Norway/MOSCOW – The US issued a 30-day waiver for countries to buy sanctioned Russian oil and petroleum products currently stranded at sea, drawing criticism from Germany and other European allies on March 13 but approval from Moscow.

US Treasury Secretary Scott Bessent said the waiver was a bid to stabilise global energy markets roiled by the Iran war, but it risks complicating Western efforts to deprive Russia of revenue for the war in Ukraine.

Oil prices eased on the morning of March 13 in Asia after the US waiver announcement, which, according to Russia’s presidential envoy Kirill Dmitriev, would affect 100 million barrels of Russian crude, equal to almost a day’s worth of global output.

German Chancellor Friedrich Merz said any move to ease Russia sanctions was wrong, while his Economy Minister Katherina Reiche said the decision was probably driven by US domestic pressure.

“Six members of the G-7 expressed a very clear opinion that this was not the right signal. We then learnt this morning that the American government has apparently decided otherwise,” Mr Merz told a press conference in Norway.

“Again, we believe this is wrong. There is currently a price problem but not a quantity problem. And therefore, I would like to know what other motives led the American government to make this decision,” he said.

Norway’s Prime Minister Jonas Gahr Store also said that energy sanctions on Russia should not be eased, echoing comments earlier this week from French President Emmanuel Macron and European Commission President Ursula von der Leyen.

A spokesperson for British Prime Minister Keir Starmer said Britain and its partners should maintain collective pressure on Russia through sanctions.

Kremlin spokesman Dmitry Peskov told reporters on March 13 the US move was aimed at stabilising world energy markets.

“In this respect, our interests coincide,” Mr Peskov said.

“The situation is fraught with the risk of a growing crisis in the global energy sector... Without significant volumes of Russian oil, market stabilisation is impossible,” he added.

According to data analytics firm Vortexa, around 7.3 million barrels of Russia-originated oil have been in floating storage, while 148.6 million barrels have been in vessels in transit.

Up to 420,000 tonnes of diesel and gasoil are currently in floating storage and could be available for sale in the market, according to LSEG ship-tracking data and trade sources.

Washington’s move comes nearly two weeks after the US and Israel began their strikes on Iran in an aerial war that has paralysed shipping through the vital Strait of Hormuz.

The 32-nation International Energy Agency said on March 12 that the war in the Middle East was creating the biggest oil supply disruption in history.

Vessel tracking service Kpler said on March 13 the US waiver was unlikely to create meaningful new demand.

“Most cargoes already appear to be placed with Asian buyers, particularly India. Instead, the measure mainly allows Russian barrels already in transit to complete their voyage and discharge,” it said.

The licence issued by Washington on March 12 authorises the delivery and sale of Russian crude oil and petroleum products loaded on vessels as of March 12 and valid until midnight Washington time on April 11.

The move reflects White House worries that the surge in oil prices will hurt US businesses and consumers ahead of the November midterm elections, when Mr Trump’s fellow Republicans hope to retain control of Congress.

The sanctions relief took place after a call between Mr Trump and Russian President Vladimir Putin on March 9 and a subsequent visit to the US by Mr Dmitriev to discuss the current energy crisis with a US delegation that included Mr Trump’s special envoy Steve Witkoff and son-in-law Jared Kushner.

Following the announcement from the Treasury, Thailand’s Deputy Prime Minister Phipat Ratchakitprakarn said his country was ready to purchase Russian crude and was preparing for talks.

Japan also said on March 13 it would now consider whether to buy Russian crude.

The US Treasury previously issued a 30-day waiver on March 5 specifically for India, allowing New Delhi to buy Russian oil stuck at sea.

Russia, whose energy revenues halved in the first two months of the year and whose government had already been contemplating a major cut to budget spending in 2026, stands to benefit from a higher oil price.

Mr Trump has also ordered the US International Development Finance Corporation to provide political risk insurance and financial guarantees for maritime trade in the Gulf, and said the US Navy could escort ships in the region.

The Trump administration is also considering temporarily waiving a shipping rule known as the Jones Act to ensure energy and agricultural products can move freely between ​US ports, the White House said.

Waiving the rule would allow foreign ships to ​carry fuel between US ​ports, potentially lowering costs and speeding deliveries.

“The President is taking every action he can to lower prices... and you’re going to see more and more in the days to come,” White House deputy chief of staff Stephen Miller told Fox News’ Primetime programme on March 12. REUTERS