The U.S. Treasury Department has renewed its temporary sanctions wind-down authorization for Russian oil cargoes currently at sea, extending the general license through mid-June amid ongoing tensions in global energy markets linked to the Strait of Hormuz. The Office of Foreign Assets Control (OFAC) issued General License 134C, allowing transactions related to Russian-origin crude oil and petroleum products loaded before April 17, 2026, to remain valid until June 17, 2026. This new license replaces the previous General License 134B, which had expired on May 16.
Crucially, this extension does not modify the existing authorization framework but merely prolongs it by another month. It allows only for shipments loaded prior to the specified cutoff date, with no permissions for new trade in Russian oil. The authorization notably includes cargoes on vessels blocked by U.S. sanctions if the oil was loaded beforehand.
OFAC clarifies that authorized activities encompass various necessary maritime operations, including shipping and insurance. However, strict limitations persist regarding transactions linked to Iran, North Korea, Cuba, or Russian-occupied Ukrainian regions. The continued issuance of these licenses is framed as a strategy for market stabilization, designed to enable the clearance of already-loaded cargoes, which is particularly critical as tanker traffic through the Strait of Hormuz remains below normal, and demands for Russian crude persist.
