WASHINGTON: US Treasury Secretary Scott Bessent said Thursday that the Trump administration could grant future sanctions waivers that enable purchases of Russian oil on a country-specific basis.
“My strong inclination is that if there are further waivers, that they will be country-specific and not generalized,” Bessent told the House Ways and Means Committee.
US President Donald Trump’s administration has twice extended temporary sanctions waivers for Russian oil cargoes that are already at sea, as global energy prices surged due to war in the Middle East.
The measures were meant to address oil supply shortages triggered by the US-Israel war on Iran that started in late February.
“The Russian Federation has seen very little incremental revenue because of the waivers. Their oil was always going to China, and now the oil can go to our allies,” Bessent argued Thursday.
Tehran retaliated by virtually blocking the Strait of Hormuz, where roughly a fifth of the world’s oil and gas supplies normally passed through. This sent costs soaring and squeezed energy-vulnerable countries.
On Thursday, Bessent was responding to questions on the rationale for such easing measures, given concerns that they could benefit Moscow amid the war in Ukraine.
Russia’s invasion of Ukraine, launched in 2022, has become the deadliest conflict in Europe since World War II.
Most recently, the US Treasury in May extended its sanctions waiver on Russian oil currently at sea by 30 days.
In March, the Treasury Department also temporarily lifted sanctions on Iranian oil already loaded onto vessels as it sought to stem a global supply crunch.
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