Trump Administration Temporarily Lets Buyers Take Russian Oil Already at Sea
The Trump administration has issued a one‑month sanctions license allowing countries to purchase Russian oil and petroleum products already loaded and at sea as of Thursday, Treasury Secretary Scott Bessent announced, marking a notable loosening of wartime sanctions on Moscow’s energy sector. Treasury documents say the step covers roughly 124 million barrels of Russian oil currently afloat worldwide and is meant to free up stranded supply as the Iran war and effective shutdown of the Strait of Hormuz send global crude prices to multi‑year highs. Bessent argued on X that the move is narrowly tailored and will not significantly benefit the Kremlin because Russia collects most revenue at the point of extraction, but congressional Democrats say the policy risks enriching President Vladimir Putin and undermining sanctions meant to limit his ability to fund the Ukraine war. The decision follows a separate, India‑specific one‑month license last week and comes just after Russian envoy Kirill Dmitriev met in Florida with U.S. negotiators Steve Witkoff and Jared Kushner to discuss the energy crisis, prompting questions online about back‑channel talks even as Democrats warn that Trump is effectively giving Putin and his ‘shadow fleet’ new avenues to move sanctioned oil. The clash over this waiver highlights the tension between the administration’s need to tame wartime energy prices for U.S. consumers and allies and its stated goal of starving Russia’s war machine.
📌 Key Facts
- Treasury Secretary Scott Bessent announced a one‑month authorization allowing purchase of Russian oil and petroleum products that were loaded on ships on or before Thursday.
- CBS, citing internal data, says about 124 million barrels of Russian oil are currently at sea and potentially affected by the waiver.
- The license follows a narrower, India‑only sanctions waiver issued last week, after the Trump administration had previously pressured India to halt Russian oil purchases.
- Sen. Brian Schatz and a group of Senate Democrats publicly criticized the move, warning it could hand Vladimir Putin and his shadow fleet a financial windfall and weaken sanctions tied to the Ukraine war.
- Russian envoy Kirill Dmitriev met in Florida with U.S. negotiators Steve Witkoff and Jared Kushner a day before the new license, and later declared that ‘Russian energy is indispensable’ to easing the global crisis.
📊 Relevant Data
Black households in the US bear an additional annual energy expenditure of $1.6 billion compared to other demographic groups, primarily driven by greater needs for space heating.
Racial disparities in the energy burden beyond socio-economic backgrounds — ScienceDirect
In 2024, food insecurity rates were 24.4% for Black households and 20.2% for Latinx households in the US, more than double the 10.1% rate for White, non-Latinx households, with high energy prices contributing to increased costs that exacerbate these disparities.
Hunger & Poverty in America — Food Research & Action Center
Russian oil and gas budget revenues contracted by 23.9% in 2023 compared to 2022, despite rebounding oil prices, due to the impact of Western sanctions including the oil price cap.
Oil, gas, and war: The effect of sanctions on the Russian energy industry — Atlantic Council
Approximately 20% of global oil consumption and 20% of LNG trade passes through the Strait of Hormuz, with 84% of the crude oil and condensate exports through it destined for Asian markets in 2024.
Asian countries most at risk from oil and gas supply disruptions in Strait of Hormuz — Zero Carbon Analytics
In utility service areas, majority BIPOC communities pay higher energy prices but consume less energy compared to predominantly White areas, with rates 10% higher in some states like Alabama.
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