U.S. Lets Energy Payment License for Russian Banks Expire Amid Ongoing Sanctions
U.S. government actions signal a tightening of financial restrictions against Russia, impacting energy transactions.
The administration of former U.S. President Donald Trump has allowed a license covering energy payments for several Russian banks to lapse.
This license, known as 'General License 8,' had been in effect since the onset of the Russian invasion of Ukraine in February 2022, permitting certain banks to receive payments in U.S. dollars.
Edward Fishman, a former State Department official who worked on sanctions against Russia in 2014, stated that the expiration of this license will 'significantly choke off Russian oil and gas revenues.' He noted that for foreign oil refineries, traders, or entities purchasing Russian gas, processing payments to Russia in dollars or any other Western currency will become exceedingly difficult.
The U.S. government did not publicly announce or acknowledge this change, implemented by the outgoing administration of President Joseph Biden as part of a sanctions package enacted in January.
Among the measures included in this package, the Biden administration shortened the typical six-month license duration, resulting in its expiration at midnight on March 12.
Treasury Secretary Scott Besant indicated in an interview that the U.S. would not hesitate to impose further sanctions on Russia in an effort to compel the country to engage in negotiations, emphasizing that Trump 'is willing to exert maximum pressure on both sides.' A spokesman for the Treasury confirmed today that the license expired on March 12 and stated that the Trump administration will continue to enforce sanctions as part of an overarching strategy to end the conflict.
This license, known as 'General License 8,' had been in effect since the onset of the Russian invasion of Ukraine in February 2022, permitting certain banks to receive payments in U.S. dollars.
Edward Fishman, a former State Department official who worked on sanctions against Russia in 2014, stated that the expiration of this license will 'significantly choke off Russian oil and gas revenues.' He noted that for foreign oil refineries, traders, or entities purchasing Russian gas, processing payments to Russia in dollars or any other Western currency will become exceedingly difficult.
The U.S. government did not publicly announce or acknowledge this change, implemented by the outgoing administration of President Joseph Biden as part of a sanctions package enacted in January.
Among the measures included in this package, the Biden administration shortened the typical six-month license duration, resulting in its expiration at midnight on March 12.
Treasury Secretary Scott Besant indicated in an interview that the U.S. would not hesitate to impose further sanctions on Russia in an effort to compel the country to engage in negotiations, emphasizing that Trump 'is willing to exert maximum pressure on both sides.' A spokesman for the Treasury confirmed today that the license expired on March 12 and stated that the Trump administration will continue to enforce sanctions as part of an overarching strategy to end the conflict.
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