12OCT

US crude waiver lapses, no successor

2 min read

10:59UTC

The US General License 134C crude waiver expired on 17 June with no successor issued, and the gap has now run 26 days, the longest of the war.

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ConflictAssessed

Key takeaway

The US crude waiver lapsed on 17 June with no successor, the gap now 26 days and counting.

The US crude-oil waiver known as General License 134C expired on 17 June with no replacement issued since, according to S&P Global⁠¹. The waiver ran as three consecutive thirty-day licences that softened the sanctions hit on buyers of Russian crude; as of 13 July the gap has reached 26 days, the longest of the war, against the fifteen-day gap recorded on 1 July.

OFAC, the US Treasury's Office of Foreign Assets Control, has announced nothing. The lapse is read from the absence of any new licence across OFAC's recent-actions listings and the specialist trackers that logged all three prior iterations within a day, not from any Treasury decision to let it fall⁠². It should not be confused with the separate Lukoil retail-sale licence that expires on 25 July.

The crude cover fell away in the same fortnight the diesel export ban took effect, narrowing Russia's fiscal room just as the physical fuel squeeze turned hardest.

Deep Analysis

In plain English

OFAC is the part of the US Treasury that decides which sanctions exemptions apply to Russian oil. Three times this year it issued a short licence letting buyers keep purchasing Russian crude that was loaded before a cut-off date, each time renewing it within a day or two of the old one expiring. This time, the licence expired on 17 June and, as of 13 July, 26 days have passed with no replacement. This matters because that 26-day gap is far longer than any previous pause, and it has now gone unrenewed for longer than the licence itself normally lasts. Buyers who relied on that legal cover for Russian crude cargoes are operating without it.

Deep Analysis

Root Causes

OFAC administers the crude waiver as a discretionary licence renewed in short windows rather than a standing exemption, which means silence is itself an active policy outcome: without an affirmative renewal, the underlying sanctions apply in full by default.

The 30-day bridge structure was built for administrative flexibility, but it also means a single missed renewal cycle, if it becomes two, functions as a de facto termination without Treasury having to announce one.

Escalation

Direction: the gap has widened from 15 days (as of 1 July) to 26 days (as of 13 July) with no successor licence and no public Treasury statement of intent, consistent with a deliberate wind-down rather than an administrative delay.

What could happen next?

Consequence
Buyers still routing Russian crude purchases through US-linked insurance or banking lose their legal cover for cargoes loaded after 17 June until a successor licence, if any, is issued.

Source Landscape

This story draws on neutral-leaning sources

Primary parallel: The GL 134 series ran as three consecutive 30-day bridges, 134A from 12 March, 134B from 17 April, 134C from 18 May, each renewed within a day or two of the prior one expiring, a rhythm regular enough that trade-compliance trackers built routine alerts around it.

Counter-parallel: No prior gap in that rhythm exceeded a handful of days, and OFAC's own recent-actions listing has shown nothing since 17 June. There is no earlier case in this waiver's history of a gap this long resolving into a renewal, so the 26-day figure has no positive precedent to point to.

Consensus view: S&P Global's tracking of the GL 134 series notes each of the three prior 30-day bridges, ending 11 April, 16 May and 17 June, was caught and reported by every specialist compliance tracker within 24 to 48 hours of renewal. A 26-day silence across every one of those same trackers is treated as a genuine lapse, not a reporting gap.

Counter-view: Russian state media has routinely argued that US Treasury licensing actions carry limited practical weight once crude trade has shifted into shadow-fleet vessels, non-dollar settlement and buyers outside US jurisdiction, meaning a lapsed waiver mainly affects the shrinking pool of transactions still routed through US-linked insurance and banking.

Key tension: Whether the 26-day gap marks OFAC quietly ending the waiver programme, or whether the crude trade it used to cover has already migrated far enough outside US-linked channels that the waiver's absence changes little in practice.

Sources:S&P Global

Mentions:OFAC →General License 134C →Russia →Lukoil →US Treasury →S&P Global Platts →

First Reported In

Update #23 · Moscow rations diesel as US cover lapses

S&P Global· 13 Jul 2026

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Causes and effects

Caused by

15 days: Russia's crude waiver lapses

The 15-day unrenewed gap noted on 1 July escalated into a 26-day gap by 13 July with still no successor licence.

Occurred 1 Jul 2026

Read story →

This Event

US crude waiver lapses, no successor

Russia loses the US licence that eased trade in its crude just as its domestic fuel squeeze peaks.

Led to

Treasury drops Turkish and Indian names

The unannounced Treasury delistings land in the same weeks as an unrenewed crude oil waiver, both signs of a quiet US easing on Russia sanctions enforcement.

Occurred 1 Jul 2026

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Urals crude nearly triples in weeks

The 36-day waiver gap by 23 July extends the 26-day gap logged on 13 July.

Occurred 23 Jul 2026

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Different Perspectives

Government of Latvia

Latvia abstained on 22 September when the EU renewed its individual sanctions for 36 months at the price of delisting Alisher Usmanov and Mikhail Fridman, and promised national sanctions of its own. Riga's abstention marks how far a frontline member state will go to keep listed names listed.

India's Ministry of External Affairs

After the House passed the Graham bill on 16 September, India's foreign ministry said it would keep buying energy on market terms and protect its trade. Russia supplied 30.3% of India's crude imports in fiscal 2026, so the tariff decision due around 18 October falls directly on New Delhi.

Kaja Kallas, EU foreign policy chief

Kallas answered the US licence on 10 October by saying Europe would not ease pressure, and EU ministers adopted a 22nd package of nearly 1,600 listings two days later. Brussels is tightening as Washington loosens, though TASS reported the package adds no significant new trade restrictions.

Donald Trump and the US Treasury

The Treasury licensed Russian diesel imports until 7 April 2027 on the day of Trump's call with Putin, and Trump then told reporters Ukraine should find a new leader. Washington is trading sanctions relief for fuel supply while pressing Kyiv to halt the refinery strikes behind the shortage.

Kremlin and Deputy Prime Minister Alexander Novak

After the 9 October call the Kremlin said Russia was ready to supply oil and petroleum products to American and global markets, and Novak brought forward the end of diesel export curbs. Moscow is selling the shortage back as goodwill, with volumes that Decree No. 686 now hides from outside checks.

Volodymyr Zelenskyy, President of Ukraine

Zelenskyy called GL 135 an investment in prolonging the war and offered to stop striking Russian refineries if Russia stops destroying Ukraine's energy system. Answering Trump's call for a new leader, he set a total 60-day ceasefire as the condition for elections, which puts the next move on Moscow.