US authorizes Russian bank transactions for energy payments amid sanctions

The US Treasury has temporarily authorized transactions with several major Russian banks for energy-related payments, according to a recent license by the US Treasury

May 1, 2024 - 07:15

US authorizes Russian bank transactions for energy payments amid sanctions

The-US-treasury

The US Treasury has permitted transactions with Russian banks, including VTB, the Central Bank, Sberbank, and Alfa-Bank, for energy-related payments.

According to a US Treasury license, the permission lasts until 1 November 2024, with the possibility of an extension after that date.

Financial Times reported on 29 April that the largest Western banks remaining in Russia after the full-scale invasion of Ukraine paid the Kremlin over $ 854 million in taxes in 2023. It’s four times more than in the pre-war period.

The US Treasury license names other banks granted temporary authorization, such as Otkritie, Sovcombank, Rosbank, VEB.RF, Bank Zenit, and Bank Saint Petersburg.

The license also allows transactions with Russian banks “related to the production, supply, or exchange of energy in any way,” the decree states.

The US Treasury Directive is a clarification and explanation of which transactions are “exceptional,” not subject to sanctions, and require approval in accordance with the protocols set out in the Directive. The relevant transaction authorization has been extended several times in the past.

FT reported that seven top European lenders by Russian assets – Raiffeisen Bank International, UniCredit, ING, Commerzbank, Deutsche Bank, Intesa Sanpaolo, and OTP – reported combined profits exceeding $3,2 billion in 2023, triple the amount from 2021.

Read also:

You could close this page. Or you could join our community and help us produce more materials like this. We keep our reporting open and accessible to everyone because we believe in the power of free information. This is why our small, cost-effective team depends on the support of readers like you to bring deliver timely news, quality analysis, and on-the-ground reports about Russia's war against Ukraine and Ukraine's struggle to build a democratic society. A little bit goes a long way: for as little as the cost of one cup of coffee a month, you can help build bridges between Ukraine and the rest of the world, plus become a co-creator and vote for topics we should cover next. Become a patron or see other ways to support. Become a Patron!