US extends waiver allowing purchases of Russian oil at sea through May 16

The United States has extended a waiver allowing countries to purchase sanctioned Russian oil and petroleum products at sea through May 16, 2026, a move aimed at controlling global energy prices that have surged amid the ongoing U.S.-Israeli war on Iran. The Treasury Department announced the extension on April 17, following the expiration of an original 30-day waiver on April 11, despite Treasury Secretary Scott Bessent's earlier statement that Washington would not renew the sanctions relief. The waivers came just two days after Bessent's comments and could free approximately 100 million barrels of Russian crude, equivalent to nearly a day's worth of global output. Meanwhile, Serbia's sanctioned oil firm NIS received a separate 60-day extension on its U.S. operating license until mid-June, allowing the country to continue oil imports and avoid another shutdown of its sole Pancevo refinery. The extension is critical for Serbia, as NIS supplies 80 percent of the country's fuel market and was forced to halt production in December when long-delayed sanctions cut off crude supplies. Serbian officials are negotiating the sale of the Russian-majority stake in NIS to Hungary's energy giant MOL, with a U.S.-imposed May 22 deadline for completing the deal. The company is currently 45 percent owned by Gazprom Neft, which is under U.S. sanctions, while the Serbian state holds nearly 30 percent. The waivers could complicate Western efforts to deprive Russia of revenue for its war in Ukraine, a point emphasized by European Commission President Ursula von der Leyen, who stated it is not the time to relax sanctions against Russia. While the sanctions reprieve may temporarily boost global oil supplies, it has not prevented petroleum prices from spiking due to the partial closure of the Strait of Hormuz, through which approximately 20 percent of the world's oil and gas was shipped daily before the Iran conflict began. Serbia remains a close Kremlin ally and one of the few European states not to sanction Russia over the Ukraine war, having sold a majority stake in NIS to Gazprom in 2008 for 400 million euros.