The Trump administration announced on Thursday that a license permitting energy transactions with Russian financial institutions had expired, increasing pressure on Russian President Vladimir Putin to pursue a peace agreement over Ukraine.
According to a Treasury spokesperson, the license expired as scheduled at 12:01 a.m. EDT on Wednesday.
The Biden administration had initially issued the wind-down on January 10 to target Russia's oil and gas revenues. This was done in coordination with the then President-elect Donald Trump’s team to strengthen both his and Ukraine's negotiating position in potential peace talks.
The wind-down period was provided to finalize remaining transactions related to energy financing deals with Russian banks such as Sberbank, VTB, and the Central Bank of the Russian Federation. Allowing the license to expire now restricts Russian banks from accessing U.S. payment systems.
The Biden administration included this energy transaction license in a sanctions package following Russia's invasion of Ukraine in February 2022, aiming to prevent a surge in global oil prices.
U.S. Treasury Secretary Scott Bessent criticized Biden's sanctions on Russia, claiming they were ineffective due to the primary concern being maintaining low oil prices.
A Treasury spokesperson affirmed that the Trump administration remains dedicated to ending hostilities and promoting negotiations to resolve the conflict. Implementing sanctions is viewed as essential to achieve these objectives.
As part of the sanctions, transactions in dollars with Russian energy companies Gazprom Neft and Surneftegas were banned, along with 183 vessels involved in shipping Russian oil, including those in the non-Western operated "shadow fleet" of aged tankers.
ClearView Energy Partners, an energy policy research group, warned that the expiration of the license could complicate or potentially halt some third-party countries' purchases of petroleum.
Reportedly, the U.S. Treasury Department is considering additional measures targeting oilfield service companies, building on steps already taken by the Biden administration.