US indicated it would not ease Russian oil sanctions again, EU's Sefcovic says

European Trade Commissioner Maros Sefcovic on Friday said he raised concerns about the recent U.S. easing of sanctions on Russian oil during his talks with U.S. Treasury Secretary Scott Bessent, and understood that it would not happen again.

Sefcovic told reporters he understood from U.S. officials that the sanctions relief stemmed from concerns about the "extremely difficult situation" facing some lower-income countries that are heavily dependent on oil imports.

The U.S. Treasury Department on Friday issued a Russia-related general license, allowing the delivery and sale of Russian crude oil and petroleum products loaded on vessels as of April 17, extending a previous license through May 16.

Bessent this week told U.S. senators that he extended sanctions relief on Russian seaborne oil for another 30 days after requests from a number of countries that are most vulnerable to shortages due to the closure of the Strait of Hormuz. The requests were made during the International Monetary Fund and World Bank spring meetings last week, he said.

Sefcovic said he discussed the issue with Bessent during their meeting this week, but was told the sanctions relief was needed to respond to the situation in the strait, which remains largely blocked during an uneasy ceasefire between the U.S. and Iran.

"My clear understanding was that this will not be repeated in the future, and it was also done because several countries with the lower incomes have been in an extremely ... difficult situation," he said.

Sefcovic said he and Bessent also discussed disruptions to fertilizer supply chains, focusing on the impact in Europe as well as the "alarming situation" in Africa.

"It's on both of our radar screens and we are ready to cooperate in that," he said.

Bessent pushed members of the Group of 20 major economies last week to agree to take coordinated action alongside the IMF and World Bank to ensure countries had access to fertilizer supplies.

Asian economies in particular have struggled with lack of physical oil supplies from the Gulf since the start of the U.S.-Israeli bombing campaign against Iran on February 28.

-Andrea Shalal/Reuters