The US is easing restrictions on Russian oil amid rising energy prices
The administration of US President Donald Trump has begun to ease some of the restrictions on Russian oil exports that were previously imposed to put pressure on the Kremlin over the war in Ukraine. Washington explains the move as necessary to soften the shock to energy markets following the strikes by the United States and Israel on Iran.
US Treasury Secretary Scott Bessent announced a 30-day easing that allows India to buy Russian oil that is already at sea. According to him, this move will have only a limited impact on Russia's revenues.
Bessent also said that Washington is considering further easing sanctions on Russian oil.
US President Donald Trump said during a press conference on Monday that his administration is temporarily easing certain oil sanctions to lower prices. However, he did not specify whether this refers to the decision on India or other measures.
Trump did not mention Russia directly, but noted that some countries may receive sanctions relief.
"We have sanctions against some countries, we are going to lift those sanctions until the situation is resolved," he said.
"And then who knows, maybe we won't have to impose them because there will be so much peace."
Some Democrats in the Senate criticised the administration's decision, saying that easing restrictions could bring Moscow significant financial benefits.
In their opinion, now is not the time to open up opportunities for large energy companies or ships of the so-called shadow fleet to sell Russian oil.
The changes in the energy markets are taking place at a time when Russia's energy revenues have been declining. In February, oil and gas revenues to the Russian budget were 44 per cent lower than in the same month a year earlier. As a result, the Russian government is using funds from the National Welfare Fund.
During a meeting on the oil and gas market, Russian President Vladimir Putin said that Russian energy companies should take advantage of the current situation, noting that high oil prices may be temporary.
Putin also reiterated that the government is considering the possibility of completely stopping energy supplies to Europe, which is trying to reduce its dependence on Russian energy after Russia's full-scale invasion of Ukraine in 2022.
According to him, it is more expedient to redirect supplies to more attractive destinations than to wait until the European market closes completely.
Analysts note that the impact of high energy prices on the Russian budget will depend on the duration of instability in the Middle East. Short-term price increases may have a limited effect, while a prolonged period of high prices could have a more significant impact on Russia's financial situation.
Bessent said that the easing of restrictions on Indian purchases of Russian oil is narrow in scope and will not bring significant financial benefits to the Russian government.
"There are hundreds of millions of barrels of sanctioned oil already at sea, and in effect, by lifting sanctions on these volumes, the Treasury can increase supply in the market," he said in an interview with Fox Business.
Russia's energy revenue problems began to mount last year after global oil prices fell. The United States also imposed sanctions on two major Russian oil companies, Lukoil and Rosneft, and began to pressure India to reduce its purchases of Russian oil.
Russia expert Janis Klugge of the German Institute for International and Security Affairs noted that these measures have been among the most effective tools for putting pressure on Moscow by reducing energy revenues.
At the same time, he noted that the situation for Russia could change due to the current rise in energy prices.
Hungarian Prime Minister Viktor Orbán called on the European Union to suspend sanctions against the Russian energy sector.
German Chancellor Friedrich Merz said that there were no grounds for easing sanctions against Russia. During a press conference in Berlin, he stressed that solidarity with Ukraine was a priority even in the event of rising energy prices.
Kremlin press secretary Dmitry Peskov said that a possible easing of US restrictions on Russian oil was not discussed in detail during a telephone conversation between Donald Trump and Vladimir Putin.
Despite rising global oil prices due to the war around Iran, Russia is also facing the consequences of the strengthening of the rouble. As a result, revenues from energy sales in dollars are providing less income to the budget.
