Trump administration toughens sanctions on Russian oil, gas and banking sectors

Washington — The Trump administration is placing more restrictions on Russia’s oil, gas and banking sectors by further restricting Russian access to U.S. payment systems, according to four people familiar with the plans. 

The Treasury Department on Wednesday let lapse a 60-day exemption put in place by the Biden administration in January that allowed specific energy transactions involving sanctioned Russian banks to continue. By letting the waiver lapse, the banks may no longer access U.S. payment systems to conduct major energy transactions.

The Russian financial institutions that had been exempt from sanctions included Vnesheconombank, Bank Financial Corporation Otkritie, Sovcombank, Sberbank, VTB Bank, Alfa-Bank, Rosbank, Bank Zenit, Bank Saint-Petersburg and the Central Bank of Russia.

The decision to further restrict access to American banking systems makes it harder for other countries to buy Russian oil, thus limiting its global supply. It could lead to a price spike of up to $5 per barrel more, a notable jump after lower prices in recent weeks.

But the stiffer restrictions also come as the Trump administration is trying to convince Russia to accept terms of a proposed 30-day ceasefire to end the war in Ukraine. President Trump on Thursday said U.S. officials are meeting with “President Putin and others” and having “very serious discussions.”