Ukraine, its allies object to U.S. move to exempt Russian oil from sanctions for at least 30 days

The United States issued a 30-day licence for countries to buy Russian oil and petroleum products currently stranded ‌at sea in what Treasury Secretary Scott Bessent said was a step to stabilize global energy markets roiled by the Iran war.

The announcement comes a day after the U.S. Energy Department said that the U.S. would be releasing 172 million barrels of oil from the strategic petroleum reserve in an effort to curb skyrocketing oil prices.

That ​release was part of a broader commitment by the 32-nation International Energy Agency ​to release 400 million barrels of oil. The agency said earlier on Thursday that the war in the Middle East was creating the biggest oil supply disruption in history.

Bessent, in a statement on X released hours after benchmark oil prices shot ​above $100 US a barrel, said the measure was “narrowly tailored” and “short-term” and would not provide significant financial benefit to the Russian ⁠government.

“The temporary increase in oil prices ⁠is a short-term and temporary disruption that will result in a massive ‌benefit to our nation and economy in the long-term,” Bessent said, echoing U.S. President Donald Trump.

Ukrainian President Volodymyr Zelenskyy said Friday the move could provide Russia with billions in revenue, adding: “It certainly does not help peace.”

The move also caused consternation among Ukraine allies. Since returning to office, Trump has often assailed European countries for their reliance on Russian energy.

“Canada’s position is to maintain sanctions on Russia, including on the shadow fleet, which is moving this oil,” Prime Minister Mark Carney said at a joint news conference with German and Norwegian counterparts in Bardufoss, Norway.

“As you all know, we had a videoconference with the G7 leaders on Wednesday, and six out of seven were clearly of the opinion we should not release the sanctions against Russia,” said German Chancellor Friedrich Merz. “We were a little bit surprised that we heard this morning that the American government decided differently. This is definitely not our view.”

The U.S. has mediated talks with Ukraine and Russia in recent months to halt the war, now into its fifth year. Antonio Costa, president of the European Council, suggested the “unilateral decision by the United States” could undermine those efforts.

“Increasing economic pressure on Russia is decisive for it to accept a serious negotiation for a just and lasting peace,” said Costa of Portugal.

‘We make a lot of money’

The licence issued Thursday, which authorizes the delivery and sale of Russian crude oil and petroleum products loaded on vessels as of March 12, will remain valid through midnight Washington time on April 11, according to the text of the licence posted on the Treasury Department’s website.

The U.S. Treasury ⁠previously issued a 30-day waiver on March 5 specifically for India, allowing New Delhi to buy Russian oil stuck at sea. That move was slammed by Senate Democrats, who said in a statement it was “giving Putin a huge financial boost and the means to continue his bloody war in Ukraine.”

Among other measures to tame energy prices, Trump has already ordered the U.S. International Development Finance Corporation to provide political risk insurance and financial guarantees for maritime trade in the Gulf and said ‌the U.S. navy could escort ships in the region.

---

In another attempt to control prices, the Trump administration is considering temporarily waiving a shipping rule known as the Jones Act to ensure energy and agricultural products can move freely between U.S. ports, the White House said. Waiving the rule would allow foreign ships to carry fuel between U.S. ports, potentially lowering costs and speeding deliveries.

“The president is ​taking every action he can to lower prices … unsanctioned oil that’s at sea to get that into the market, continuing to push our own producers to drill and expand production as fast and ⁠as far as they can, providing regulatory relief, 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 on Thursday.

There were about 124 million barrels of Russian-origin oil on water across 30 ⁠different locations ⁠globally as of Thursday, Fox News reported, adding that ​the U.S. licence would provide around five to six days of supply when taking into account the daily loss of oil from the Strait.

Russia sees a ‌U.S. sanctions waiver on its ​oil as ​an attempt by Washington ​to stabilize global ⁠energy ⁠markets, ‌and the two countries have ⁠a shared interest in this, ‌Kremlin spokesman Dmitry Peskov said on Friday.

Without ​significant ⁠volumes of Russian ⁠oil ⁠entering ⁠the market, ​such stabilization is ​impossible, ⁠Peskov said.

Trump said earlier ​on Thursday the United States stood ⁠to make significant money from oil prices driven higher by the war, prompting criticism from some lawmakers who accused him of caring only about rich people.

“The United States is the largest Oil Producer in the World, by far, so when oil prices ⁠go up, we make a lot of money,” he said on social media.

U.S. and Israeli strikes on Iran and the subsequent response by Tehran have widened regional tensions and paralyzed shipping through the Strait of Hormuz, disrupting vital Middle East oil and gas flows and sending energy prices higher.

Raising the stakes for the global economy, Iran’s Islamic Revolutionary Guard Corps says it will block oil shipments from the ⁠Gulf unless the U.S. and Israeli attacks ‌cease.