US renews sanctions relief on Russian oil for another 30 days

Fall in oil prices The United States renewed this Friday (17) an authorization that allows countries to buy Russian oil and derivatives at sea, despite sanctions against Moscow. The decision was published by the Treasury Department and is valid for cargo shipped until May 16th. 🗒️Do you have any reporting suggestions? Send it to g1 The measure replaces a previous 30-day authorization, which had expired on April 11. The text excludes transactions involving Iran, Cuba and North Korea. The renewal is part of the US strategy to contain rising global energy prices, pressured by the war in the Middle East. Easing sanctions could hamper Western efforts to reduce Russia’s revenue from the war against Ukraine and generate friction with allies. European Commission President Ursula von der Leyen said this is not the time to ease sanctions against Moscow. On Wednesday (15), Treasury Secretary Scott Bessent had stated that Washington did not intend to renew this authorization or another similar one, related to Iranian oil, which expires on Sunday (19). This authorization for Iran, issued on March 20, allowed about 140 million barrels to reach the global market, helping to alleviate pressure on supply during the conflict, according to Bessent. Parliamentarians from both parties criticized the measures, stating that they benefit opposing economies: that of Russia, at war with Ukraine, and that of Iran, in confrontation with the United States. For Brett Erickson, sanctions expert at consultancy Obsidian Risk Advisors, the decision should not be the last. “The conflict has caused lasting damage to global energy markets, and the instruments available to stabilize them are close to their limits,” he said. Kremlin envoy Kirill Dmitriev previously said the first authorization would allow the release of 100 million barrels of Russian oil — a volume equivalent to almost a day’s worth of global production. Despite the temporary relief in supply, prices remain under pressure. The reason is Iran’s partial closure of the Strait of Hormuz, a route through which around 20% of the world’s oil and gas passed before the war. Oil tanker Vladimir Arsenyev is seen at the Kozmino oil terminal, in Russia, on August 12, 2022 REUTERS/Tatiana Meel VIDEOS: most watched on g1

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