PARIS — Treasury Secretary Scott Bessent has said he will extend a temporary pause of U.S. sanctions on Russian oil exports until mid-June.
The decision deals a major blow to Kyiv and to the European Commission, which has urged Washington to resume sanctions to squeeze President Vladimir Putin’s war chest more than four years into his war on Ukraine.
Bessent announced a 30-day extension of the sanctions waiver during a meeting of G7 finance ministers in Paris on Monday, three officials told POLITICO. Although the U.S. imports almost no oil from Russia, the move would ease pressure on major buyers such as China and India at a time of scarce supply.
Bessent later confirmed the move in a post on X. “This general license will help stabilize the physical crude market and ensure oil reaches the most energy-vulnerable countries,” he wrote.
The U.S. paused sanctions on Russian oil for 30 days immediately after the start of the war on Iran in February, which fueled a spike in global oil prices and inflation.
“It will also help reroute existing supply to countries most in need by reducing China’s ability to stockpile discounted oil,” Bessent added.
By allowing other countries to buy Russian oil, Washington’s end goal is to increase global supply and curb prices for households and businesses.
However, Bessent’s announcement came as a surprise to Washington’s European allies, after he told them last month he would end the sanctions waiver after its expiry on May 16, one official from a European G7 country said.
Ministers meeting in Paris focused on the economic effects of the war in the Middle East on Monday.
In a stark warning, International Energy Agency head Fatih Birol said oil supplies were plummeting. “Commercial inventories are … depleting very fast now,” Birol told reporters.
In order to curb soaring prices, G7 countries in March coordinated the release of strategic oil reserves immediately after the start of the conflict.
French finance minister Roland Lescure said a further release of strategic reserves would not be on the agenda of the G7 leaders’ summit being hosted by France from June 15-17. But, he told reporters, “in the following weeks and months, this question could certainly arise.”
Giorgio Leali contributed to this report.
