U.S. President Donald Trump will impose more restrictions on Russia’s oil, gas and banking sectors.
According to CBS, Trump’s plan is to limit Russian access to the U.S. payment system.
On Thursday, March 13, the Treasury Department allowed the Joe Biden administration to implement a 60-day exemption in January.
The exemption allows specific energy transactions involving approval of the Russian Bank to continue.
By allowing waiver errors, banks may no longer access the U.S. payment system to conduct major energy transactions.
Russian financial institutions exempt from sanctions include Vnesheconombank, Bank Financial Corporation Otkritie, Sovcombank, Sberbank, Sberbank, VTB Bank, Alfa-Bank, Rosbank, Rosbank, Bank Zenit, Bank Saint-Petersburg and the Russian Central Bank.
The decision to further restrict the U.S. banking system will make it harder for other countries to buy Russian oil, thus limiting their global supply.
This could result in prices as high as $5 per barrel, a significant increase after the lower prices in recent weeks.
New restrictions have also occurred as the Trump administration is trying to convince Russian President Vladimir Putin to accept the proposed 30-day ceasefire clause to end the Ukrainian war.
