An aerial view shows the oil tanker named Boracay (also called Pushpa), a vessel being investigated by French authorities and suspected of belonging to the so-called “shadow fleet” involved in the Russian oil trade, off the coast of the western France port of Saint-Nazaire, France, October 2, 2025. REUTERS\/Stephane Mahe<\/p>\n
U.S. Extends Russian Oil Wind-Down License Despite Earlier Pledge to Let It Expire<\/p>\n
The U.S. Treasury Department has quietly extended its<\/p>\n
wind-down authorization for Russian oil cargoes already at sea, issuing a new general license that allows shipments to continue flowing through mid-May\u2014despite prior signals that the waiver would not be renewed.<\/p>\n
The Office of Foreign Assets Control (OFAC) on April 17 issued<\/p>\n
, authorizing transactions necessary for the delivery and sale of Russian-origin crude oil and petroleum products loaded onto vessels on or before that date. The license remains in effect until\u00a0May 16, 2026, replacing the previous authorization that expired on April 11.<\/p>\n
The move marks the latest extension in a series of rolling \u201cwind-down\u201d licenses first introduced in March, allowing cargoes already in transit to reach buyers without triggering sanctions violations.<\/p>\n
A Reversal on Russian Oil Policy<\/p>\n
The extension comes just days after senior U.S. officials indicated the administration did not plan to renew the waiver, underscoring a rapid policy shift as energy markets remain under pressure from disruptions tied to the<\/p>\n
Strait of Hormuz crisis<\/p>\n
Treasury\u2019s decision effectively grants another 30-day window for countries to continue purchasing sanctioned Russian oil already afloat, even as broader restrictions on Moscow\u2019s energy sector remain in place.<\/p>\n
Scope and Limitations<\/p>\n
As with earlier versions of the license, GL 134B authorizes only transactions \u201cordinarily incident and necessary\u201d to complete these voyages, including shipping, insurance, bunkering, and port services.<\/p>\n
The authorization applies strictly to cargoes loaded before the cutoff date and does not open the door to new Russian oil trade.<\/p>\n
Importantly, the license maintains explicit prohibitions on transactions involving sanctioned jurisdictions, including Iran, reinforcing the separation between U.S. policy toward Russian and Iranian energy flows.<\/p>\n
A Calibrated Sanctions Strategy<\/p>\n
The extension highlights a widening divergence in Washington\u2019s sanctions approach.<\/p>\n
While Russian cargoes already at sea are being given time to clear the market, the U.S. is simultaneously moving to tighten restrictions on Iranian oil exports, including allowing a separate Iran-related waiver to expire as part of a broader enforcement push tied to the ongoing<\/p>\n
The continuation of the Russian wind-down license provides short-term relief to oil markets and refiners reliant on seaborne crude, particularly in Asia, where buyers have continued to absorb discounted Russian barrels.<\/p>\n
However, with the authorization now extended multiple times and officials signaling reluctance to continue the policy indefinitely, uncertainty is likely to persist.<\/p>\n
For shipping, the message is clear that Russian cargoes already on the water may still find a legal path to discharge, but the window remains temporary, and narrowing.<\/p>\n