U.S. Treasury's License Expiry: Impact on Russian Energy Sanctions

The U.S. Treasury confirmed the expiration of a license for energy transactions with Russian banks due to sanctions. This move aligns with the Biden administration's tough stance on Russian oil revenues amid the Ukraine conflict. Criticism revolves around the sanctions' effectiveness in maintaining low oil prices.

The U.S. Treasury has announced the expiration of a crucial license related to energy transactions with Russian banks, aligning with the Biden administration's strategic sanctions on Russia over the Ukraine crisis.

Initially granted on January 10, the General License 8L allowed the wind-down of existing transactions as the administration restricted energy financing deals with major Russian banks, such as Sberbank and VTB, to counter Russia's oil revenue. These sanctions aimed to strengthen Ukraine's position in any future peace negotiations.

However, U.S. Treasury Secretary Scott Bessent has voiced criticism, suggesting the sanctions haven't effectively impacted oil pricing. Despite this, the Treasury maintains its focus on sanctions as a tool to help conclude the war while fostering negotiations.

(With inputs from agencies.)