The administration of U.S. President Donald Trump has not extended a key sanctions exemption that previously allowed transactions with sanctioned Russian banks for energy-related payments.
The exemption, known as General License 8L, was issued by the U.S. Department of the Treasury and expired on 12 March. It permitted financial operations related to energy transactions with 12 Russian banks under sanctions. The license covered payments for Russian natural gas, oil, petroleum products, coal, uranium, and associated technologies.
The waiver was initially introduced by the Biden administration in February 2022 following Russia’s full-scale invasion of Ukraine. It effectively allowed Russian banks to process payments for energy exports, particularly crude oil, despite the broader U.S. sanctions regime.
No Renewal from the Trump Administration
As of the afternoon of 13 March, the U.S. government had not renewed the license. White House press secretary Caroline Leavitt confirmed that President Trump had not authorised its extension. However, no official statement was provided on the rationale behind this decision.
Fox News journalist Jacqui Heinrich reported that the Trump administration did not respond to inquiries for two days regarding the renewal, suggesting that the lapse could have been an oversight. In contrast, her colleague Edward Lawrence cited an anonymous source claiming that the move was a strategic negotiation tactic aimed at ending the war in Ukraine.
According to the source, the U.S. government will continue applying sanctions, which remain a key leverage point in efforts to conclude the conflict.
Trump’s Approach to Sanctions Against Russia
The decision not to renew the waiver aligns with recent statements from President Trump, who has suggested imposing extensive new sanctions and tariffs on Russia. Last week, he stated that he was considering additional economic measures in response to Russia’s continued aggression against Ukraine.
Trump has repeatedly asserted that no U.S. leader has been tougher on Russia than himself. His administration’s latest action suggests a potential shift towards tightening financial restrictions on Moscow, though its broader strategic implications remain unclear.
The decision is likely to have significant consequences for global energy markets, as the expired license had facilitated payments for Russian oil and gas exports. The European Union, which continues to rely on some Russian energy supplies, may face further disruptions in transactions.
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