Treasury Secretary Bessent Reverses Russian Oil Sanctions Policy 48 Hours After Public Denial

Treasury Secretary Scott Bessent has become the center of a major policy reversal involving Russian oil sanctions that unfolded over just 48 hours this week. On Wednesday, Bessent explicitly told reporters that the Treasury would not renew a sanctions waiver allowing countries to purchase Russian oil currently at sea. He stated clearly, "We will not be renewing the general license on Russian oil." However, on Friday evening, the Treasury's Office of Foreign Assets Control quietly issued general license 134B, extending the waiver through May 16th, directly contradicting his public pledge made just two days earlier.

According to DW News and energy experts, this reversal allows countries to continue buying sanctioned Russian crude already on international waters for another month, effectively doubling the amount of Russian oil that could be sold on markets to around 200 million barrels. Energy analyst Robin Mills from the Center on Global Energy Policy noted that this decision makes Russia the big winner of the Iran war situation, as it provides substantial relief to Moscow despite the ongoing conflict affecting global oil markets.

The timing and reversal raised significant questions about decision making within the Trump administration. Benjamin Schmitt, former US State Department energy security advisor, expressed concern that this represents a measure he would always have recommended against. He noted that while the waiver is technically limited to oil already at sea, it signals a troubling direction for US sanctions policy going forward and will likely lead to further extensions.

The waiver was reportedly prompted by pressure from energy sector leaders and international allies concerned about rising oil prices stemming from tensions around the Strait of Hormuz related to the Iran conflict. CEOs of major energy companies voiced concerns to Energy Secretary Chris Wright and Bessent about market impacts.

Critics argue the reversal undermines years of transatlantic coordination on Russian sanctions and provides what Schmitt called a windfall profit for Russia that could support its military capabilities. The move marks a sharp departure from consistent messaging about maintaining sanctions pressure on Moscow.

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