US secretary of state Marco Rubio has said that the United States wants to end waivers that allow limited access to Russian oil “as soon as possible,” although the final decision rests with the US Treasury Department.
Speaking before the Senate Foreign Relations Committee on Tuesday, Rubio said the future of these waivers would depend on global market conditions and US policy priorities.
“That ultimately is a decision that’s made by [US] Treasury, but I will tell you, it depends on the circumstances. At the time, we would like to end it as soon as we possibly can, because the underlying policy of this country has been to sanction their oil. These are time-limited waivers for the purpose of opening up more global supply,” Rubio said.
The US first announced in mid-March a temporary 30-day waiver to allow Indian refiners to buy Russian oil. After U.S.-Israeli attacks on Iran drove up global oil prices, the Treasury issued the temporary license in March in an attempt to ease oil supply shortages and mitigate price spikes by releasing Russian oil and petroleum products stranded in tankers.
Since then, the waiver has been extended, with the latest extension set to expire on June 17.
The US and its allies-imposed sanctions on Russia’s energy sector following the Ukraine conflict. However, Washington has continued to issue temporary exemptions to prevent disruptions in global oil supplies.
When asked by the ranking member of the U.S. Senate Committee on Foreign Relations regarding the waiver, Rubio stated that the final decision to call it off will be made by the Treasury Department.
The Committee member further sought a commitment from Rubio on whether the waiver will be extended again or not.
As oil prices remain volatile, Rubio stated that the waiver remains in place to alleviate the global impact of the surge.
“The problem we’re facing, too, is there’s a contagion potential, and that is that at some point we can do strategic reserves, we can do some of the other things that we’ve done to alleviate global supply, but at some point you have to ensure – this is not so much for us,” he told the Senate Foreign Relations Committee.
The measure is a temporary waiver of sanctions on Russian oil already at sea. With the U.S.-Israeli war on Iran breaking out on February 28, global oil and gas supply took a hit as Tehran blocked the Strait of Hormuz.
According to Rubio, the waiver was introduced primarily to prevent a sharp rise in global oil prices during a period of geopolitical turmoil.
He admitted that the measure was not designed mainly for the US economy but helped stabilise energy markets worldwide.
“At the end of the day, the US economy is not in need of it, but other economies around the world have benefited from the Russian waiver,” Rubio said.
The remarks come as Washington seeks to limit the flow of money into Russia’s energy sector, which remains a crucial source of revenue for Moscow.
Washington has been pushing India and other major importers to gradually reduce their reliance on Russian oil and seek supplies elsewhere. However, any move affecting Russian oil flows could have wider implications for global energy markets, given the role of major buyers in balancing supply and prices.
