US Treasury exempts energy payments

The US Treasury has stressed that payments for Russian energy supplies are permitted under US sanctions imposed against Russia for its invasion of Ukraine on February 24.

Biden allows Russian energy payments

Biden allows Russian energy payments

"Treasury remains committed to permitting energy-related payments — ranging from production to consumption for a wide array of energy sources — involving specified sanctioned Russian banks," Treasury said.

Russia's key exports of crude oil, gas and refined products have not been directly impacted by US or other sanctions or the exclusion of Russian banks from the global Swift financial messaging system.

Permission to allow payments for Russian energy supplies was "to help protect Americans, partners, and allies from higher energy prices that would drive more resources to Russia," Treasury said.

Allowiing payments for energy supplies are in stark contrast to the impact of US, EU, UK and other international sanctions on companies with energy interests in Russia.

Energy firms BP, Shell and ExxonMobil are amongst firms that have announced they will divest from Russia because of coordinated sanctions.

US and other sanctions have also resulted in the suspension of trading in Russian mining stocks listed on international stock exchanges.

Some mining firms with operations in Russia have had to halt operations in light of US and other sanctions against Moscow.

Canadian-based miner Kinross Gold on March 2 said it was suspending all activities at its Russian Kupol mine and at its Udinsk mine development in order to adhere to sanctions and legal restrictions.

But Treasury repeated energy payments are and will continue to be allowed.

"While current circumstances and the dangers from Russia's war in Ukraine may lead entities and individuals to make their own risk assessments and business decisions, Treasury is making clear that sanctions will not block energy payments".

US President Joe Biden has made it a key economic policy priority to reduce inflation, including the domestic price of gasoline. 

The EU relies heavily on Russian gas exports.

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