U.S. shortens extension of GAZ Group general licenses over tensions with Russia

A Treasury official told Reuters the licenses, previously extended for a year at a time and set to expire on Wednesday, were being extended for only 90 days. "These authorizations were extended for a shorter time period given the current situation with Russia; further extension will be informed by Russia’s behavior," the official said.

The U.S. Treasury Department on Monday shortened the extension of two general licenses for Russia's GAZ Group, a manufacturer of commercial vehicles, as the United States seeks to deter Russia from invading Ukraine. A Treasury official told Reuters the licenses, previously extended for a year at a time and set to expire on Wednesday, were being extended for only 90 days.

"These authorizations were extended for a shorter time period given the current situation with Russia; further extension will be informed by Russia's behavior," the official said. Russia has massed tens of thousands of troops near Ukraine's borders. It denies planning an invasion but NATO said it was putting forces on standby and reinforcing eastern Europe -- moves that Moscow described as "hysteria".

The licenses authorize certain activities involving the van maker and transactions necessary to divest or transfer debt, equity or other holdings in GAZ. The Treasury imposed sanctions in 2018 against billionaire Oleg Deripaska and eight companies in which he is a large shareholder, including automaker Gaz, citing "malign activities" by Russia.

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