US extends permission for energy-related transactions with Russian banks

The US Department of Treasury has extended permission to carry out transactions with several Russian banks, including VTB, Central Bank, Sberbank and Alfa-Bank, for energy-related transactions until 1 November 2024. Prior to that, this licence was prolonged until 25 October 2023. 

Source: Radio Liberty, citing a licence from the US Treasury Department

Details: The banks that have received temporary licences are also named banks, such as Otkritie, Sovcombank, Rosbank, VEB.RF, Zenit Bank, and Bank Saint-Petersburg. 

The department's resolution clarified that transactions related to the extraction, production, processing, liquefaction, transportation, or purchase of oil and a range of other energy resources, including LNG, timber, coal, and uranium, would be considered energy-related. 

The licence also allows transactions with Russian banks associated with the production, supply, or exchange of energy in any form.

Update: The previous headline "US temporarily approves energy transactions with major Russian banks" may have created a false impression that sanctions against Russian banking institutions had been lifted. However, this is not the case. 

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 authorisation has been extended several times in the past. 

Background: Some Russian banks are likely trading gold in the United Arab Emirates and Türkiye to bypass the ban on importing dollars and euros into the country.

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