US Treasury Department Temporarily Authorizes Transactions with Russian Banks

The ban on transactions with Russian banks related to energy settlements is lifted until 1 November 2024. The US Treasury Department temporarily allowed energy-related settlements with Russian banks, including VTB, the Central Bank, Sberbank and Alfa Bank. According to the license issued by the US ministry, the ban on transactions has been lifted until November 1, 2024, with the possibility of extension, the Kommersant newspaper reported on Monday, April 29. The US Department of the Treasury explained that transactions related to the extraction, production, refining, liquefaction, transport or purchase of oil, LNG, timber, coal and uranium would be considered energy-related. The license also permits transactions with Russian banks related to the production, supply or exchange of energy by any means. Since the beginning of Russia’s full-scale invasion of Ukraine in February 2022, Washington has repeatedly imposed sanctions against Russian banks. Restrictive measures were also imposed on financial institutions if they conduct transactions in the interests of Russia’s defense industry. Thus, in late April, it turned out that the US was developing sanctions that could cut off some Chinese banks from the global financial system in order to limit Beijing’s support for Russian military production.