- The Trump administration ended a key license allowing U.S. energy transactions with Russian banks, cutting off their access to U.S. payment systems.
- The move increases pressure on Russian President Vladimir Putin to negotiate peace in Ukraine, following broader U.S. sanctions targeting Russia’s energy sector.
- The U.S. Treasury plans further sanctions on Russian oil companies, building on previous restrictions to weaken Russia’s economy.
The Trump administration ended a key license allowing U.S. energy transactions with Russian financial institutions, aiming to increase pressure on Russian President Vladimir Putin to reach a peace deal in Ukraine.
The U.S. Treasury confirmed the expiration of General License 8L at 12:01 a.m. EDT on March 12. The license had permitted U.S. energy transactions with Russian banks like Sberbank, VTB, and the Central Bank of Russia. Without it, these banks lost access to U.S. payment systems, escalating the financial restrictions.
President Joe Biden’s administration issued the license shortly after Russia invaded Ukraine in February 2022, intending to prevent a surge in global oil prices. It allowed limited financial transactions for energy deals with Russian banks.
U.S. Treasury Secretary Scott Bessent criticised Biden’s Russia sanctions, arguing they focused too much on stabilising oil prices. Bessent urged stricter measures from the beginning.
A Trump administration spokesperson reiterated the administration’s goal of ending the war in Ukraine. “We remain committed to stopping the fighting and encouraging peace talks,” the spokesperson said. “Our sanctions serve as a crucial tool in this effort.”
The sanctions also prohibited U.S. dollar transactions with Russian energy companies like Gazprom Neft and Surneftegas. Additionally, they targeted 183 vessels that transported Russian oil, many of them part of the “shadow fleet”—older tankers operated by non-Western companies.
ClearView Energy Partners, an energy research group, warned that the license’s expiration could disrupt oil purchases by some countries still buying from Russia.
According to a source familiar with the situation, the U.S. Treasury plans further sanctions on Russian oil companies and oilfield service providers. These new measures would build on those already imposed by the Biden administration, which has steadily tightened restrictions on Russia since the war began.
The energy-related sanctions form part of a broader U.S. strategy to isolate Russia financially. The Treasury has targeted multiple sectors, including banking and defence, to weaken Russia’s ability to sustain its military efforts.
Ending General License 8L signals a tougher stance by the Trump administration on Russia, increasing pressure on Putin to seek peace. This decision adds to the growing international efforts to force Moscow to end its military aggression in Ukraine.
As the conflict continues, the U.S. and its allies fine-tune their sanctions, targeting key sectors of the Russian economy to cripple its war effort. The latest move on energy transactions increases the financial strain on Russia’s economy, which is already weakened by global sanctions.