The US Treasury Secretary defends extending the exemption for Russian oil from sanctions

Motivation US Secretary of the Treasury Scott Besant on the decision to extend the temporary exemption from sanctions that allows the sale of Russian oil is already in the sea.
In response to a question during a hearing about the US administration’s reversal of the decision not to extend sanctions, Pisant said on Wednesday that it came after more than 10 of the most fragile and energy-poor countries contacted him.
He explained that this happened on the sidelines of the spring meetings of the International Monetary Fund and the World Bank, in which finance ministers, central bank governors and other leaders participated in Washington.
Pisent added before a subcommittee in the Council Sheikhs: "They asked us to extend this exemption from sanctions, which is only 30 days"

Foreign currency swap lines

Pessent also noted that several U.S. allies, as well as some Asian countries, have requested foreign currency swap lines.
The Treasury secretary told lawmakers that "Swap lines, whether from the Federal Reserve or the Treasury, are intended to maintain order in dollar funding markets and prevent a chaotic sale of US assets."

Calming rising energy prices

The aim of the exemption announced last Friday, which will last for a month, was to calm rising energy prices, but it came only two days after Besant told reporters that Washington would not renew the exemption.
The exemption allowed the purchase of oil and petroleum products that were loaded on ships from Friday until 12:01 am (04:01 GMT) on May 16.
/>This decision extends a previous temporary exemption from sanctions that expired on April 11.
Ukrainian President Volodymyr Zelensky denounced the easing of sanctions imposed on Russian oil, saying it provides money to finance the war on Ukraine.

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