The Biden administration is reportedly not expected to renew special permits allowing the purchase of sanctioned Russian oil, despite rising fuel prices. Chris Wright, a representative from the Department of Energy, indicated that Washington does not plan to issue new exemptions from the sanctions regime.
Previously, the U.S. Department of the Treasury had temporarily permitted the sale of Russian crude oil that was stranded on tankers due to supply chain disruptions. Wright emphasized during a Wall Street Journal event, “This was a broad extension. I don’t think you’ll see it extended.” The previous permit for the sale of Russian crude oil expired on April 11.
Another permit concerning Iranian oil and petrochemical products is set to expire on April 19.
This decision comes against the backdrop of significant increases in energy prices. Since the onset of the conflict in Ukraine, oil prices have surged by more than 30%, contributing to rising gasoline and aviation fuel costs.
The situation is further complicated by the maritime blockade of the Strait of Hormuz, implemented by the Trump administration following unsuccessful negotiations with Iran. This strait is a critical route for global oil supplies, accounting for approximately one-fifth of the world’s oil volume, and its closure has led to substantial disruptions in market supplies.
In March and April, prices for Russian oil reached record highs, primarily due to the conflict in the Middle East, which has created a shortage of crude on the global market. The Trump administration had previously considered extending special exemptions for purchasing Russian oil to stabilize domestic fuel prices in the United States.
Meanwhile, Ukrainian President Volodymyr Zelensky has stated that there are currently no grounds for easing sanctions on Russia. He asserted that any concessions to the Kremlin would only serve to finance its ongoing military actions against Ukraine.
The Biden administration is not expected to renew special permits for purchasing Russian oil, as energy prices continue to rise amid ongoing geopolitical tensions. This decision aligns with the administration's stance on maintaining sanctions against Russia, despite pressures to stabilize domestic fuel costs.