The US Closes Loophole for Russian Banks: What Awaits the Kremlin?
13 March 22:23
The United States has further increased economic pressure on Russia by allowing the early termination of the 8L general license, which previously allowed certain energy-related transactions to be conducted through Russian banks under sanctions. This was reported by Komersant ukrainskyi with reference to Reuters.
The license, which played a crucial role in enabling foreign companies to make payments for Russian energy resources, expired as scheduled at 12:01 a.m. EDT on March 13, 2025.
Key implications of the license expiration
The expiration of the 8L general license significantly restricts financial transactions with key Russian financial institutions involved in the energy sector. These restrictions are part of a broader international strategy aimed at weakening the Russian economy, in particular in response to the war in Ukraine.
The United States coordinated this move with the United Kingdom and Canada, which have already tightened sanctions on Russian energy exports. The European Union, meanwhile, has sharply reduced its dependence on Russian natural gas, cutting imports from 40% of total EU supplies to less than 8%. In addition, both the United States and the United Kingdom have imposed a complete ban on Russian liquefied natural gas (LNG) to further limit Moscow’s revenue streams.
US Treasury Warning to Foreign Banks
The US Treasury Department issued a stern warning to foreign banks, emphasizing that those who continue to facilitate Russian financial transactions risk facing secondary sanctions. This measure is intended to cut Russia off from global financial networks, making it more difficult for Moscow to finance its military efforts.
Impact on the Russian economy and army
By restricting financial flows to the Russian energy sector, Washington seeks to cut off a key source of revenue for the Kremlin. Russian state-owned banks and energy companies, many of which have played an active role in supporting the military-industrial complex, will face increasing difficulties in conducting international transactions.
The move also aligns with broader Western efforts to put economic pressure on Moscow, with recent sanctions targeting Russian defense companies, senior officials and oligarchs linked to the war effort.
