The US Department of the Treasury has decided to extend the exemption from sanctions on Russian oil transported by sea for an additional 30 days. This extension follows the expiration of the previous permit on May 16.
According to a source familiar with the matter, the decision was made after several countries requested more time to procure Russian oil. The exemption specifically applies to maritime shipments that fall under US sanctions.
The source indicated that the US administration opted for this extension due to concerns over potential oil shortages and rising prices in the global market.
However, reports suggest that the continuation of the sanctions exemption has not significantly impacted gasoline prices in the United States.
Vladyslav Vlasuk, a representative of the Ukrainian president on sanctions policy, commented that during the two-month period of eased sanctions, Russia may have generated over $5 billion in additional revenue. He noted that the primary factor behind this increase was the rise in global oil prices. Even without changes to the sanctions regime, Russia continued to sell substantial volumes of oil, but the price increase contributed most significantly to revenue gains.
Meanwhile, export volumes have not seen a substantial rise due to infrastructural constraints and pressure on logistical routes, including kinetic sanctions targeting port and transport hubs. Vlasuk concluded that the revenue effect stemmed not from increased sales but from higher prices per barrel.
The US has extended its sanctions exemption on Russian oil for 30 days, allowing more time for procurement amid rising global oil prices. This decision has raised concerns about the financial benefits accruing to Russia during the exemption period.