Why has Trump eased sanctions on Russian oil - and will it help Putin? 1 day ago Share Save Archie Mitchell Business reporter Share Save Getty Images The Trump administration's decision to ease sanctions on countries buying Russian oil has been welcomed by the Kremlin and has sparked deep concern among pro-Ukraine campaigners. The US waiver, active for one month, will let countries buy up Russian oil which, under current sanctions, has been floating at sea, unable to be sold. Treasury Secretary Scott Bessent said the "tailored, short-term" policy move would reduce the economic impact of the US-Israel war with Iran. But Bill Browder, a sanctions campaigner and leading critic of Putin's regime, told the BBC the move was "a terrible decision that will enrich Vladimir Putin and prolong the war in Ukraine". The new policy marks a sharp about-turn for US policy. Previously Washington came down hard on countries purchasing Russian oil, slapping a huge 50% tariff on imports from India in August, over allegations the country was buying Russian oil, and thereby helping to finance the war in Ukraine. As a result, much of the sanctioned oil was left on tankers off the coast of India and other Asian countries, with traders searching for buyers willing to take it. A bail-out for Russia? Putin's economic envoy, Kirill Dmitriev, said the move showed Russia was integral to the stability of the global energy market and that the further loosening of sanctions was "inevitable". Bessent has insisted that Russia will only see a limited financial boost from the sale of the oil, while the move addressed the "instability posed by the terrorist Iranian regime". However, Benjamin Hilgenstock, head of macroeconomic research and strategy at the Kyiv School of Economics, argued the move was "a serious bailout" for Putin's regime. He estimated monthly Russian oil exports could be boosted by around $10bn (£7.5bn), with half of this being paid in tax straight into the government's coffers. Economic pressure is mounting in Russia, with oil exports in February hitting their lowest since Moscow's full-scale invasion of Ukraine in 2022. If the crisis in Iran were to last only a month or two, the impact would be limited, but if it lasted much longer it would put Russia "back in quite a comfortable situation", he said. The Centre for Research on Energy and Clean Air (CREA) puts a much lower estimate on the amount of oil Russia could sell under the waiver. But the Finnish research organisation says the move would still allow Russia to clear some stocks, and boost production. Russia had been forced to slow down its oil production due to storage constraints, CREA energy analyst Isaac Levi said. Will it take the pressure off the oil price? Allowing more Russian oil onto the market could help ease the upward pressure on the oil price. But Warren Patterson, head of commodities strategy at Dutch bank ING, said the US move would "only scratch the surface" of the
Originally reported by BBC Business. Published on ABN12.