The Trump administration has opted not to renew a key waiver allowing Russian banks to conduct energy-related transactions, further tightening sanctions on Russia. The decision, reported by CBS News on Thursday, follows the expiration of a 60-day waiver implemented during the Biden administration that permitted sanctioned Russian banks to process oil and gas payments through European financial institutions.
With the waiver expiring at midnight on Wednesday, the U.S. Treasury’s move restricts access to American banking systems, making it more difficult for foreign refineries and traders to purchase Russian oil and gas. Experts predict that these restrictions could drive oil prices up by as much as $5 per barrel. While the full financial impact remains unclear, former officials suggest the move will further limit Russia’s ability to fund its war in Ukraine.
The Senate Foreign Relations Committee commended President Donald Trump for closing what it described as a sanctions loophole. “Yesterday, President Trump closed a sanctions loophole created by the Biden Administration that allowed the sale of Russian oil and gas to Europe, despite the fact that Russian energy revenue funds its war in Ukraine. This was a great step by President Trump to increase pressure on Russia,” the committee said in a statement.
Meanwhile, the European Union renewed sanctions against most Russian elites but removed four oligarchs from its sanctions list under pressure from Hungary and Slovakia. Hungary had initially threatened to block the six-month extension of sanctions against President Vladimir Putin and top Russian officials unless eight individuals were removed. Following negotiations, three names remained: Russian Sports Minister Mikhail Degtyaryov, billionaire Viatcheslav Moshe Kantor, and Gulbakhor Ismailova, sister of Putin ally Alisher Usmanov. A fourth individual, businessman Vladimir Rashevsky, was removed due to insufficient legal justification.
The move has sparked criticism within the EU, with Estonia’s foreign minister, Margus Tsahkna, accusing Hungary of undermining European security interests. Estonia announced unilateral actions against the delisted Russians, including travel bans. An anonymous EU diplomat expressed frustration, stating, “The Hungarians say, ‘Look, it looks like Trump is going to make a peace deal,’ but for us, there’s not even the beginning of the conditions where we would contemplate lifting sanctions.”
