Trump Reimposes Russian Oil Sanctions, Cutting Moscow Revenue Stream

The Trump administration let a sanctions waiver on Russian seaborne oil expire at 12:01 a.m. EDT on May 16, reimposing restrictions that had enabled India and other countries to continue buying Russian crude despite Western sanctions. The decision cuts off what critics called a $150 million daily revenue stream for Moscow's war effort in Ukraine. Global energy markets face unprecedented disruptions from the Iran conflict.

President Trump demonstrated a firm commitment to his "America First" energy policy with the move. The decision marks a return to tough sanctions enforcement after months of policy confusion. Treasury Secretary Scott Bessent followed through on his April pledge not to renew General License 134B, which had temporarily authorized transactions involving Russian oil already loaded onto tankers.

Bessent told reporters on April 24 that the U.S. does not plan to renew the Russian oil waiver. He added that Iranian oil waiver renewal is "totally off the table." His decision came despite intense lobbying from energy-dependent nations seeking relief during one of the worst supply crises in history.

General License 134B replaced earlier versions issued in March and April. The May 16 expiration date was built into its design from the start. The original General License 134 was created on March 12, extended on April 17, and always intended as temporary relief rather than permanent policy.

Brent crude climbed above $105 per barrel in mid-May. Prices sat at approximately $72 to $73 before the Iran conflict began in late February, representing an increase exceeding 40 percent. The International Energy Agency called the Strait of Hormuz disruption "the biggest supply disruption in the history of the oil market."

Bessent explained at a Senate Appropriations subcommittee hearing on April 22 that more than 10 of the most vulnerable and poorest countries in terms of energy approached him seeking an extension. He acknowledged their concerns but maintained that Russian oil on the water had been largely depleted.

Democratic lawmakers applauded the administration's decision while criticizing the original waiver. Sens. Jeanne Shaheen (D-NH) and Elizabeth Warren (D-MA) issued a joint statement on May 15 urging the administration to end what they called an "ill-conceived policy of helping Russia make even more money."

"Treasury must finally end its ill-conceived policy of helping Russia make even more money from President Trump's reckless war in Iran," the senators wrote. "With the average price of gas above $4.50 a gallon, there is no evidence that this license is reducing costs for American families burdened by the President's conflict in the Middle East."

Republican leaders echoed support for maintaining sanctions pressure. Rep. Brian Mast (R-FL), chairman of the House Foreign Affairs Committee, said on May 15 that sanctions on Russia are "a great thing" and he is "all for continuing them." He cautioned that sanctions policy should ensure more harm to enemies than to allies.

Russia reportedly earned an extra $150 million per day in budget revenue from oil sales at elevated prices during the waiver period, according to Atlantic Council estimates. Those funds flowed directly to Moscow's war effort in Ukraine at a critical moment.

"The more sanctions are applied against Russia, the quicker we will see success in peace negotiations," Vladyslav Vlasiuk, senior adviser to President Volodymyr Zelenskyy, told RFE/RL prior to the expiration.

India, the world's third-largest crude importer and largest buyer of Russian seaborne crude, asked the U.S. to extend the waiver on May 14. The country's imports of Russian crude hit a record 2.3 million barrels per day in May, according to Kpler data.

Indian officials warned Washington that volatility in global oil markets risked wider economic consequences for its 1.4 billion people. The country maintains 60 days of crude oil rolling stock and foreign exchange reserves of approximately $703 billion. Still, New Delhi sought additional security amid the Iran war disruptions.

U.S. gasoline prices reached $4.53 per gallon on May 16. Inflation rose to 3.8 percent year-over-year in April. Energy prices accounted for more than 40 percent of the inflation increase, creating domestic pressure alongside international energy security concerns.

The administration's decision signals a return to firm sanctions enforcement after months of policy whiplash. The Treasury Department faced criticism for previous extensions. Brett Erickson of Obsidian Risk Advisors warned on May 16 that "there is a very real likelihood we see some form of additional sanctions relief in the coming days."

Secretary of State Marco Rubio is expected to visit India in coming weeks for a Quad meeting. Energy security and sanctions enforcement will feature prominently in diplomatic discussions. The administration's tough stance may face future tests as market pressures intensify.

The IEA coordinated an emergency release of 400 million barrels of strategic oil reserves. The largest ever coordinated release aimed to address the supply crisis. Gulf countries slashed combined oil production by at least 10 million barrels per day after Iran war disruptions choked the Strait of Hormuz.

Russia's war in Ukraine has imposed punishing sanctions from the U.S. and G7 since 2022. European allies lowered a price cap to $44 per barrel in January. The U.S. had not adopted that lower cap but maintained separate restrictions on Russian energy exports.

The waiver expiration underscores Trump's prioritization of American interests and allied security over Russian revenue streams. The administration chose sanctions enforcement over short-term market relief, even during one of history's most severe energy disruptions. Moscow's war funding remains unacceptable regardless of global conditions.