US sanction waiver expires, ratcheting pressure on Russia
The administration of U.S. President Donald Trump has not extended the sanctions waiver that allowed transactions with Russian banks related to the trading of Russian energy carriers. The decision to terminate this loophole was made by Joe Biden's administration and expired on Tuesday.
According to CBS, with the expiration of the so-called General License 8L, sanctioned Russian banks can no longer use the American financial system to process transactions related to the trading of oil and gas. This is intended to significantly impede Russia's ability to trade its resources in dollars. CBS reports that this could result in an increase in oil prices by approximately £4 per barrel.
Key sanctions loophole on Russia expired
This loophole was in place from the start of the sanctions against Russian banks, on the first day of Russia's full-scale invasion, and was periodically renewed by the Biden administration nearly until the end of his presidency. The previous administration justified the exception with concerns about rising oil prices and worries about the impact on European economies of disconnecting from Russian resources.
The policy change took place on 10th January, in the final days of the Biden administration, when, along with imposing the first significant sanctions against the Russian energy sector, it was decided to end the exception. Meanwhile, entities trading with Russia were given until 12th March to complete transactions. The new administration chose not to alter the decision of their predecessors. According to Fox News, this was a deliberate decision by officials from the Trump administration.
The Trump administration "remains focused on ending the fighting and fostering negotiations to end the war," the Treasury spokesperson said in an emailed statement. "We continue to implement our sanctions, which remain one of the levers to facilitate these goals," reported official, as cited by Reuters.
However, when asked on Thursday whether he intends to use sanctions against Russia to compel Vladimir Putin to accept a ceasefire proposal, Trump said he "doesn't want to talk about it" because discussions with Russia are ongoing. He described Putin's response to the truce offer as very promising, though incomplete.
Putin responds to truce proposal
Putin announced on Thursday that Russia supports the American proposal to end the conflict through peaceful means, but emphasised that any ceasefire should lead to lasting peace and therefore must address the ""root causes" of the war. He assessed that a 30-day ceasefire would be beneficial for Ukraine and that it is crucial to examine the nuances of a potential truce.
Putin also stated that if Russia and the United States agree on energy cooperation, it would be possible to build a gas pipeline to Europe. He remarked that Europe needs affordable Russian gas.
The Russian president held talks on Thursday with Trump's envoy for the Middle East, Steve Witkoff.
