US Treasury Denies $14B Russia Windfall as Sanctions Relief Stabilizes Oil Prices

US Treasury Secretary Scott Bessent rejected claims that Russia earned an additional $14 billion from rising oil prices and the easing of American sanctions. He made the statement during a Senate hearing broadcast by C-Span.

"I strongly disagree,” he said in response to a question from Senator Christopher Coons.

Sanctions Relief Aimed at Stabilizing Markets

Bessent emphasized that the Treasury Department ensured the release of more than 250 million barrels of oil onto the market. According to him, if Washington had not temporarily lifted sanctions on Russia, oil prices could have surged to $150 per barrel instead of the current level of around $100.

"The American consumer benefited [from the easing of sanctions],” Bessent concluded.

Earlier, he had compared the relaxation of measures against Russia to preventing an economic catastrophe.

Temporary License Extended Amid Energy Crisis

On March 12, the United States temporarily exempted the sale of Russian oil and petroleum products that had already been loaded onto tankers from sanctions. The license was initially valid until April 11.

On April 17, the US Treasury issued a new general license allowing the sale, transportation, and unloading of Russian oil and petroleum products until May 16, provided they had been loaded before April 17.

Bessent explained that more than ten countries facing acute energy shortages had requested an extension of the license. "Representatives of over ten countries in the most vulnerable position asked us to extend this authorization, and it is only for 30 days,” he said during a Senate Appropriations Committee hearing.

Global Pressure and Rising Energy Prices

The decision to extend sanctions relief came amid a broader energy crisis triggered by the effective blockade of the Strait of Hormuz, through which roughly 20 percent of global oil supplies pass.

US officials indicated that the extension followed discussions at a G20 meeting in Washington, where international financial leaders urged measures to keep energy prices under control.

Global oil prices rose sharply against the backdrop of the US-Israel operation in Iran and Tehran's restrictions on shipping through the Strait of Hormuz. This led to higher prices for Russian Urals crude, as well as increases in liquefied natural gas, aluminum, and other commodities.

Russia's Oil Revenues Increase but Remain Limited

According to a report by the International Energy Agency cited by Reuters, Russia's revenues from oil and petroleum product exports nearly doubled in March compared to February, reaching approximately $19 billion.

The Kremlin acknowledged a modest increase in oil revenues linked to the Middle East conflict, but stressed that the gains were not critical for either the federal budget or the broader Russian economy.