US issues temporary waiver on sanctioned Russian oil and petroleum products at sea

THE US has issued a temporary sanctions waiver on Russian seaborne crude and petroleum products in an effort to limit the economic fallout from the ongoing US‑Israel conflict with Iran.

US Treasury Department issued a licence on Thursday, March 12, to give authorisation for transaction of crude oil and petroleum products of Russian origin that were loaded on to vessels on or before the day of announcement. The waiver is valid for 30 days through to April 11, 2026.

The sale, delivery or offloading of these cargoes will now no longer be part of sanctions put in place after Russia started its war with Ukraine.

The authorisation includes supporting activities such as “safe docking, crew health and safety measures, emergency repairs, bunkering, insurance, and other vessel services”,

“The license applies even to vessels that may be blocked under relevant sanctions programs (including those related to Russia, Ukraine and certain Iran-related designations),” read a statement by the US Treasury.

US Treasury Secretary Scott Bessent said the waiver was aimed to promote “stability in global energy markets”.

While the temporary licence permits activity involving vessels sanctioned for certain Iran‑related reasons, it “explicitly does not authorise any other prohibited transactions, particularly those involving Iran or Iranian‑origin goods”.

The decision comes a week after the US Department of the Treasury issued India a general licence to import Russian oil stranded at sea to help ease supply pressures caused by the Middle East conflict and disruption in the Strait of Hormuz.

Vortexa data shows there about 60m barrels of Russian crude is on the water, which was loaded prior to March 6 (the day the waiver was announced), and within a 30-day voyage to India.

Non-sanctioned tankers were laden with 24m barrels, while the remaining 36m barrels were on sanctioned tankers.

On Monday, US President Donald Trump signalled lifting more sanctions on oil producing countries to stabilise pricing.

Bessent said the temporary waiver was aimed at promoting “stability in global energy markets”.