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European Union leaders called out President Donald Trump’s decision to lift sanctions on Russian oil as fueling the war machine against Ukraine, as Washington tries to ease energy prices after a second week of conflict in the Middle East.
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US Treasury Secretary Scott Bessent announced on Thursday night a temporary permit allowing countries to purchase Russian oil currently stranded at sea. The move is important as higher oil prices as a result of the war means Russia is able to cash in.
The Trump administration is trying to deal with the fallout of the war against in Iran, which has sent oil prices soaring above $100 a barrel as Tehran targets oil producers in the Gulf countries and critically important Strait of Hormuz for cargo ships.
Operations in the strait have come to a halt effectively.
Still, German Chancellor Friedrich Merz said that “easing sanctions now, for whatever reason, would be wrong” and said that support for Ukraine should not become “distracted or dissuaded” by the war in Middle East in a press conference Friday.
Merz said six of the seven G7 leaders had agreed that lifting sanctions was not “the right signal to send” when they held a joint meeting this week. The US was the exception.
“The unilateral decision by the US to lift sanctions on Russian oil exports is very concerning, as it impacts European security”, António Costa, President of the European Council, added in separate comments, stressing that Russia is the only beneficiary of the current situation, which sees Moscow coffers cashing in on the war.
“Any step that would enable Russia to increase its revenues from oil sales would be problematic in view of the larger goals that we have regarding crippling Russia’s war capabilities against Ukraine,” he added.
European Commission President Ursula von der Leyen had called on Wednesday to enforce the price cap on Russia oil and keep the restrictive measures in place. “This is not the moment to relax sanctions on Russia”, she said. French President Emmanuel Macron echoed her remarks after hosting a meeting of the G7 in which he said that backtracking on any sanctions against Russia was unjustified.
The US license will allow importers to buy Russian crude and petroleum products loaded on vessels as of March 12, authorising those same vessels to disembark by April 11. It follows a similar waiver granted to India at the end of February.
For the time being, the US waiver nor a historic release of strategic oil reserves announced this week have eased oil prices as the war in the Middle East continues. Analysts worry Iran will continue to hit key exit ports and logistics hubs.
Hungary’s Prime Minister Viktor Orbán was the only EU leader to call for sanctions to be lifted, aligning himself with the US and stepping out from the European consensus.
