U.S. Sanctions Tighten: The End of Russian Energy Transaction License

The U.S. Treasury confirmed the expiration of a license allowing the wind-down of energy transactions with Russian financial institutions. The license, known as General License 8L, ended as part of sanctions imposed in the final days of Joe Biden's presidency. It was intended to clear remaining transactions with Russian banks.

The U.S. Treasury Department announced on Thursday that the time-limited license facilitating the wrap-up of energy transactions with Russian financial institutions has ended. This development aligns with the stringent sanctions laid down during the concluding phase of President Biden's presidency.

According to a Treasury spokesperson, the specific license in question, General License 8L, officially expired precisely at 12:01 a.m. EDT on Wednesday. Initially granted by the Biden administration on January 10, this license permitted the completion of ongoing transactions in light of the restrictions on energy financing deals involving key Russian banks, including Sberbank, VTB, and the Central Bank of the Russian Federation.

The expiration marks a significant step in the U.S. efforts to intensify economic pressure on Russia. The sanctions aimed to restrict Russian financial leverage and limit the country's participation in global energy markets.

(With inputs from agencies.)