UPSC Prelims Practice Questions — U.S. extends by one month waiver on sanctions for purchases of Russian oil

Q1. Which one of the following is the primary U.S. federal body that administers and enforces economic and trade sanctions programmes, including the issuance of 'General Licenses' such as those permitting temporary purchases of Russian oil in 2026?

  • A. The Office of Foreign Assets Control (OFAC) under the Department of the Treasury
  • B. The Bureau of Industry and Security under the Department of Commerce
  • C. The Directorate of Defense Trade Controls under the Department of State
  • D. The Financial Crimes Enforcement Network (FinCEN) under the Department of Justice

Q2. With reference to an OFAC 'General License' of the kind used to permit Russian-oil purchases, consider the following statements: 1. It is a temporary authorisation carved out of an existing sanctions regime, not a permanent statutory exemption enacted by the U.S. Congress. 2. It authorises a defined category of transactions that would otherwise be prohibited, without each party needing a case-by-case specific licence. 3. Once issued, a General License can be revoked only through a fresh Act of the U.S. Congress. 4. OFAC, which operates under the Department of the Treasury, can allow a General License to lapse on its stated expiry date. Which of the above is/are correctly identified?

  1. It is a temporary authorisation carved out of an existing sanctions regime, not a permanent statutory exemption enacted by the U.S. Congress.
  2. It authorises a defined category of transactions that would otherwise be prohibited, without each party needing a case-by-case specific licence.
  3. Once issued, a General License can be revoked only through a fresh Act of the U.S. Congress.
  4. OFAC, which operates under the Department of the Treasury, can allow a General License to lapse on its stated expiry date.
  • A. 1 and 3
  • B. 2 and 4
  • C. 1, 2 and 4
  • D. 1, 2, 3 and 4

Q3. With reference to the 2026 U.S. waivers on sanctions for Russian oil purchases, consider the following statements: 1. General License 134A was first issued in March 2026 to allow sale of Russian oil already loaded onto vessels. 2. General License 134B extended the relief, permitting purchases of Russian crude loaded onto vessels on or before 17 April 2026, valid until 16 May 2026. 3. The waivers were issued to counter a global supply shock triggered by the U.S.–Israeli conflict with Iran. 4. The waivers permanently lifted all U.S. sanctions on Russia's largest oil producers. Which of the above is/are correctly identified?

  1. General License 134A was first issued in March 2026 to allow sale of Russian oil already loaded onto vessels.
  2. General License 134B extended the relief, permitting purchases of Russian crude loaded onto vessels on or before 17 April 2026, valid until 16 May 2026.
  3. The waivers were issued to counter a global supply shock triggered by the U.S.–Israeli conflict with Iran.
  4. The waivers permanently lifted all U.S. sanctions on Russia's largest oil producers.
  • A. 1, 2 and 3 only
  • B. 1 and 4 only
  • C. 2, 3 and 4 only
  • D. 1, 2, 3 and 4

Q4. The 2026 General Licenses authorising temporary purchases of Russian oil were issued by the U.S. Department of the Treasury. The U.S. Treasury Secretary who issued and publicly defended the subsequent 30-day general licence for 'energy-vulnerable' countries was:

  • A. Scott Bessent
  • B. Janet Yellen
  • C. Marco Rubio
  • D. Jerome Powell

Q5. The Government of India's policy on sourcing discounted Russian crude oil for the country's public-sector refiners, and the official reporting of India's crude import figures, falls under the authority of which Union Ministry?

  • A. Ministry of Petroleum and Natural Gas
  • B. Ministry of Commerce and Industry
  • C. Ministry of External Affairs
  • D. Ministry of Finance

Q6. With reference to the principal destination markets for discounted Russian seaborne crude oil in 2026, consider the following: 1. China 2. India 3. Refiners in Southeast Asia 4. Japan, which remains the single largest importer of Russian crude Which of the above is/are NOT correctly identified as a major destination for Russian seaborne crude?

  1. China
  2. India
  3. Refiners in Southeast Asia
  4. Japan, which remains the single largest importer of Russian crude
  • A. 1 only
  • B. 2 and 3
  • C. 4 only
  • D. 3 and 4

Q7. With reference to the price cap on Russian oil introduced after the 2022 invasion of Ukraine, consider the following statements: 1. The cap on Russian seaborne crude was set at USD 60 per barrel and took effect in December 2022. 2. It was imposed jointly by the G7, the European Union and Australia. 3. The mechanism bans the provision of Western maritime services — insurance, flagging and transport — for Russian oil sold above the cap. 4. The price cap was created by a binding resolution of the UN Security Council. Which of the above is/are correctly identified?

  1. The cap on Russian seaborne crude was set at USD 60 per barrel and took effect in December 2022.
  2. It was imposed jointly by the G7, the European Union and Australia.
  3. The mechanism bans the provision of Western maritime services — insurance, flagging and transport — for Russian oil sold above the cap.
  4. The price cap was created by a binding resolution of the UN Security Council.
  • A. 1, 2 and 3 only
  • B. 1 and 4 only
  • C. 2, 3 and 4 only
  • D. 1, 2, 3 and 4

Q8. Under the Countering America's Adversaries Through Sanctions Act (CAATSA), sanctions on foreign entities engaging in 'significant transactions' with Russia's defence and intelligence sectors (Section 231) are primarily administered by which U.S. body?

  • A. The U.S. Department of State, in consultation with the Treasury
  • B. The Office of Foreign Assets Control acting alone
  • C. The Bureau of Industry and Security under the Department of Commerce
  • D. The Department of Defense (the Pentagon)

Q9. Comparing the 2026 U.S. sanctions waiver on Iranian oil with the parallel waiver on Russian oil, consider the following statements: 1. Like the Russian-oil waiver, the Iranian-oil waiver was aimed at easing a global energy supply shock. 2. The Iranian-oil waiver took effect in June 2026 and was reported as a 60-day authorisation. 3. Unlike the Russian-oil waiver, the Iranian-oil waiver was issued by the UN Security Council rather than the U.S. Treasury. Which of the statements given above is/are correct?

  1. Like the Russian-oil waiver, the Iranian-oil waiver was aimed at easing a global energy supply shock.
  2. The Iranian-oil waiver took effect in June 2026 and was reported as a 60-day authorisation.
  3. Unlike the Russian-oil waiver, the Iranian-oil waiver was issued by the UN Security Council rather than the U.S. Treasury.
  • A. 1 only
  • B. 1 and 2 only
  • C. 2 and 3 only
  • D. 1, 2 and 3

Q10. In the context of the 2026 oil-supply disruptions that prompted the U.S. sanctions waivers, the term 'Strait of Hormuz' refers to:

  • A. A narrow maritime chokepoint between the Persian Gulf and the Gulf of Oman through which a large share of the world's seaborne crude oil passes
  • B. A pipeline network linking Russian oilfields to refineries in China
  • C. A canal joining the Mediterranean and the Red Sea used for European oil shipments
  • D. A disputed offshore maritime boundary between Israel and Lebanon rich in natural gas

Q11. In the context of U.S. sanctions administration, the 'Specially Designated Nationals (SDN) List' is best defined as:

  • A. A list of individuals, entities and vessels whose assets are blocked and with whom U.S. persons are generally prohibited from dealing
  • B. A register of foreign diplomats granted immunity while posted in the United States
  • C. A list of developing countries eligible for U.S. foreign aid on preferential terms
  • D. A roster of firms debarred from bidding on World Bank-financed contracts

Q12. With reference to sanctions as instruments of economic statecraft, consider the following statements: 1. Unilateral sanctions, such as U.S. sanctions on Russian oil, are imposed by a single state and are not by themselves binding on other countries under international law. 2. Sanctions imposed by the UN Security Council under Chapter VII of the UN Charter are binding on all UN member states. 3. 'Secondary sanctions' seek to penalise third-country entities (such as Indian or Chinese firms) that trade with a sanctioned state. 4. India is legally obliged under international law to comply with U.S. unilateral sanctions on Russia. Which of the above is/are correctly identified?

  1. Unilateral sanctions, such as U.S. sanctions on Russian oil, are imposed by a single state and are not by themselves binding on other countries under international law.
  2. Sanctions imposed by the UN Security Council under Chapter VII of the UN Charter are binding on all UN member states.
  3. 'Secondary sanctions' seek to penalise third-country entities (such as Indian or Chinese firms) that trade with a sanctioned state.
  4. India is legally obliged under international law to comply with U.S. unilateral sanctions on Russia.
  • A. 1 and 4 only
  • B. 2 and 3 only
  • C. 1, 2 and 3 only
  • D. 1, 2, 3 and 4