On April 18, the US Treasury Department officially issued a new license allowing the continued trading, delivery and unloading of crude oil and oil products originating from Russia for another month.
According to an announcement from the Foreign Assets Control Office, the license will be valid until the end of May 16. The application condition is that oil lots must be loaded onto ships before 0:01 on April 17 (US Eastern time).
The new regulation allows transactions related to sale, delivery or unloading to continue to be carried out during the transition period. The scope of application includes all relevant transport ships, including those on the list of being frozen or subject to US sanctions.
This move is assessed to be aimed at resolving the amount of Russian oil still being transported or anchored offshore. If these shipments are not allowed to dock and complete the transaction, the international energy market may face the risk of short-term supply shortages.
The extension of 30 days also helps transport businesses, importers and receiving units have more time to complete procedures for unloading goods, payment and handover for oil shipments that have left the port before the tightening order takes effect.
However, the license does not apply to transactions related to Crimea, Donetsk and Lugansk. In addition, activities related to Iran, Cuba and North Korea are also not eligible for exemption.
The new license completely replaces the similar document issued on March 19 and expires on April 11.
Previously, on April 15, US Treasury Secretary Scott Bessent declared that Washington has no plans to extend exceptions for Russian and Iranian oil being transported at sea.
However, the new decision shows that the US still prioritizes avoiding causing too large supply shocks to the energy market in the context of high global oil demand.
