Canadian Prime Minister Mark Carney has reaffirmed that Canada will continue its sanctions against Russia, including restrictions on Russian oil, even as the United States temporarily eases part of its sanction regime amid rising global oil prices.
Carney made the statement on March 13 during a visit to Norway, where he met with NATO troops participating in a cold-weather military exercise. Speaking alongside German Chancellor Friedrich Merz and Norwegian Prime Minister Jonas Gahr Støre, the Canadian leader stressed that Ottawa has no intention of relaxing its pressure on Moscow.
The issue was also discussed during a virtual meeting of the Group of Seven (G7) leaders on March 11. According to Chancellor Merz, most of the member countries opposed the U.S. decision to allow limited transactions involving Russian oil for a short period.
“Six out of seven countries believed sanctions on Russia should remain firmly in place,” Merz said, adding that several leaders were surprised to learn that Washington had chosen a different approach.
The U.S. Treasury Department announced on March 12 that it would temporarily permit countries to buy Russian oil that is already at sea. Treasury Secretary Scott Bessent explained that the 30-day measure is designed to stabilize energy markets, which have been shaken by the recent surge in oil prices.
Officials in Washington emphasized that the policy is narrowly targeted and only applies to shipments already in transit. The U.S. government argues that the move will have minimal financial impact on Russia, as most of the country’s energy revenue comes from taxes applied when oil is extracted rather than when it is sold.
The Kremlin welcomed the decision, saying the measure could apply to as much as 100 million barrels of Russian crude oil currently in transit around the world. Market data firm Vortexa estimates that roughly 7.3 million barrels of Russian oil are being stored on floating facilities, while nearly 148.6 million barrels are traveling on tankers.
Despite the temporary relief announced by Washington, both Canada and Germany signaled they will maintain their firm stance against Moscow as the war in Ukraine continues.
“Canada’s position is to keep the sanctions in place, including those targeting the so-called shadow fleet transporting Russian oil,” Carney said. Ottawa has previously sanctioned dozens of vessels believed to be part of this fleet, which Russia allegedly uses to bypass international restrictions.
Carney also pointed to Russia’s close relationship with Iran, noting that the geopolitical tensions involving Tehran have further complicated the global energy situation.
Oil markets have become increasingly volatile since the recent escalation of hostilities involving Iran. U.S. and Israeli strikes on Iranian targets triggered retaliation from Tehran, including attacks on vessels near the Strait of Hormuz a critical maritime route through which about one-fifth of the world’s oil supply passes.
The conflict has pushed oil prices up by nearly 50 percent since late February.
In response to the supply disruption, the International Energy Agency (IEA) announced earlier this week that its 32 member countries would collectively release 400 million barrels of oil from emergency reserves to help calm the markets. It marks only the sixth time the agency has coordinated such a large-scale release, including two similar actions during the 2022 energy crisis.
According to the IEA, oil shipments through the Strait of Hormuz have dropped to less than 10 percent of their normal levels before the conflict.
Canada itself does not maintain a strategic petroleum reserve. As a net exporter of oil, it is not required by the IEA to store emergency supplies, unlike some other exporting nations such as the United States, which still maintains a large strategic stockpile.
With geopolitical tensions continuing to affect global energy flows, Western governments remain divided over how best to balance economic stability with pressure on Russia. Canada, however, has made it clear that its sanctions policy will remain unchanged for now.
