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Moscow has urged the United States to lift more sanctions on Russian oil exports to help stabilise global energy markets, which have been upended by the ongoing conflict in the Middle East.
The US has already softened some of the sanctions placed on Russia following its full-scale invasion of Ukraine, but this move has sparked backlash from Western allies, who argue that the proceeds from Russian oil sales fund the war effort.
The tensions in the Middle East, exacerbated by the US-Israel strikes on Iran and Tehran’s retaliatory attacks across the Gulf, have caused a near-total halt in transit through the vital Strait of Hormuz, sending global oil prices soaring. As a result, oil prices are holding above $100 per barrel, leading the US to temporarily allow the sale of Russian oil that is stranded at sea.
Kremlin spokesman Dmitry Peskov acknowledged that US and Russian interests aligned in the need to stabilise the global energy market, saying that “without significant volumes of Russian oil, market stabilisation is impossible.” However, he warned that such actions would only partially help stabilise the market.
Russia stands to benefit significantly from this shift, with rising oil prices potentially plugging the gaps in its public finances. The pro-Kremlin Izvestia newspaper reported that an extra $11 per barrel would add $28 billion to Russia’s annual revenue.
Kirill Dmitriev, Russia’s economic envoy, has argued that lifting sanctions on Russian oil is “increasingly inevitable.” He suggested that the US is acknowledging the need for Russian oil to maintain stability in the global energy market, despite resistance from some European Union officials.
However, European countries have shown strong opposition to such moves. French President Emmanuel Macron and German officials have expressed concerns about the potential to inadvertently fund Russia’s war efforts. Macron emphasised that the European consensus should remain unchanged, maintaining sanctions on Russia as efforts to support Ukraine continue.
In response to soaring prices and geopolitical tensions, the US Treasury has issued a license allowing the sale of Russian crude oil and petroleum products loaded onto vessels before March 12. Despite this, US officials, such as Treasury Secretary Scott Bessent, have reassured that the decision will not result in significant financial benefits for Russia’s government.
The situation is fluid, with European nations facing increasing pressure to reconsider their stance. Norway’s energy minister, Terje Aasland, suggested that high oil prices might prompt further debates within the EU about the 2027 ban on Russian gas imports.
Russian President Vladimir Putin has indicated a willingness to supply oil to Europe in the future, contingent on a long-term agreement free from political pressures.
