United States suspends its authorization to buy russian oil - US Treasury Department

On May 16, a temporary exemption from US sanctions that allowed the purchase of russian oil already at sea expired.

This is stated in a document from the Office of Foreign Assets Control (OFAC) of the US Department of the Treasury.

According to the agency, the exemption expired at 7:01 a.m. Kyiv time. So far, there have been no official statements from US officials regarding a possible extension of this exemption.

According to Bloomberg, India requested an extension of the exemption because it significantly increased its purchases of russian oil in May amid an energy crisis caused by supply restrictions through the Strait of Hormuz.

On March 12, the US introduced a 30-day license that temporarily allowed transactions involving russian oil and petroleum products that were in maritime transit at the time. The initial waiver was in effect until April 11, after which it was extended until May 16. Earlier, on April 15, US Treasury Secretary Scott Bessent stated that Washington does not plan to extend such licenses for russian and Iranian oil.

The US also emphasizes that russia is using oil and gas revenues to finance the war against Ukraine and is benefiting from global energy instability. According to Reuters estimates, russian oil revenues could have risen to USD 9 billion in April due to price increases caused by the situation around the Strait of Hormuz.

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