The Trump administration has begun loosening restrictions on Russian oil exports as soaring energy prices from Middle East conflict create an unexpected windfall for President Vladimir Putin. Treasury Secretary Scott Bessent issued a 30-day waiver allowing India to purchase Russian oil already at sea without U.S. retaliation, a move Treasury officials say will have only modest impact on Russian revenues.

Russia's energy revenues had been collapsing, with oil and gas companies contributing 44 percent less to the national budget in February compared to last year. The sudden price spike from U.S.-Israeli attacks on Iran has reversed this trend, though analysts caution that a month or two of high prices will have limited impact on Russia's finances. Putin suggested diverting supplies from Europe to "more attractive destinations" rather than waiting for the door to be slammed in Moscow's face.

Top Senate Democrats have criticized the administration's move, accusing Trump of giving Putin a "huge financial boost" at a critical moment. While Hungary's Viktor Orban called for suspending EU sanctions on Russian energy, German Chancellor Friedrich Merz rejected any easing, stating that solidarity with Ukraine takes precedence even if it means enduring higher energy prices. The waiver comes as Russia continues peace negotiations with Ukraine mediated by Washington.