US Reinstates Sanctions on Russian Seaborne Oil After Exemption Lapses

The US administration has reinstated sanctions on seaborne Russian oil by allowing a temporary exemption, General License 134B, to lapse without renewal. This carve-out had permitted countries like India to purchase Russian crude during the war, drawing bipartisan criticism in Washington for allegedly providing Moscow with billions in wartime energy revenue.

The exemption, first introduced in March and extended in April, was initially framed as a measure to prevent a new energy crisis amidst Middle East conflicts and threats to shipping routes. However, US and Ukrainian critics argued it allowed Russia to maintain oil export earnings. On May 15, Democratic Senators Jeanne Shaheen and Elizabeth Warren urged the administration not to extend it, stating there was no evidence it lowered US fuel prices while Russia collected billions. Republican Brian Mast, Chair of the House Foreign Affairs Committee, also supported maintaining sanctions pressure.

Earlier, on March 13, the US Treasury had eased limits on already loaded Russian oil and petroleum products, a deferral that expired on April 11. This move, intended to lower prices after Iran's blockade of the Strait of Hormuz, was criticized by Congressional Democrats who estimated Russia gained over $4 billion, while Treasury Secretary Scott Bessent's analysis put the gain at no more than $2 billion.