The United States is considering removing sanctions from more Russian oil to increase global supply, Treasury Secretary Scott Bessent said on Friday.
His remarks came a day after Washington issued a temporary waiver allowing stranded Russian crude shipments to continue to India.
US Treasury Secretary Scott Bessent said the Biden administration is reviewing the possibility of lifting sanctions on additional Russian crude oil. Speaking on Fox Business’ “Kudlow” program, Bessent said the move could help release large volumes of oil currently blocked by sanctions.
“We may unsanction other Russian oil,” Bessent said during the interview.
He explained that hundreds of millions of barrels of sanctioned Russian crude are currently stranded at sea, and removing restrictions could increase global oil supply.
“There are hundreds of millions of sanctioned barrels of sanctioned crude on the water and in essence, by unsanctioning them, Treasury can create supply, and we are looking at that,” he added.
US allows Russian oil shipments to India
The comments came a day after the United States granted a 30-day waiver allowing the sale of Russian crude oil currently stuck at sea to continue to India.
According to Bessent, Washington had previously pressured India to halt purchases of Russian oil. “We stopped India from buying oil, so it stopped,” Bessent said during an interview with Fox News.
He added that India has now resumed buying Russian oil with the permission of the United States. “Now with our permission, India is buying Russian oil again,” he said.
India described as 'good actor'
Bessent also praised India’s cooperation with Washington regarding energy policies. He said India has proven to be a “good actor” in its dealings with the United States on the issue of Russian oil purchases.
The treasury secretary indicated that the US government is actively considering further steps to lift sanctions on Russian oil exports.
Bessent also commented on developments in the Strait of Hormuz, a critical global shipping route for oil. He said Iranian and Chinese ships are currently passing through the strait, while efforts are underway to keep the route open.
According to the Treasury Secretary, authorities are trying to ensure that the Strait of Hormuz remains open for at least a week or two, amid growing regional tensions.
Global energy supply concerns remain
The possibility of releasing additional Russian crude into the market comes at a time when global energy supply chains are under pressure.
Allowing more Russian oil to enter the market could help stabilize supply and ease volatility in global oil prices, particularly as geopolitical tensions continue to affect major shipping routes and energy exports.
