The Trump administration toughened sanctions on Russia's oil and gas industry on March 13 by not renewing an exemption that allows Russian banks to access U.S. payment systems to conduct energy transactions.
The exemption, initially issued by the Biden administration, was not re-signed by Trump and will make it more difficult for countries to buy primarily Russian oil, likely leading to higher oil prices.
The exemption initially applied to transactions involving natural gas, oil and petroleum products, coal, uranium, and similar products.
The move comes as U.S. President Donald Trump said on March 7 that he is considering imposing sweeping banking sanctions and tariffs on Russia until there is a ceasefire and peace agreement.
Kyiv agreed to a 30-day ceasefire proposed by Washington during the talks in Jeddah on March 11, provided that Russia did as well. The talks in Saudi Arabia also led to the U.S. restarting key military and intelligence support for Ukraine, which had been halted last week.
Trump previously ruled out lifting sanctions on Moscow before a deal is reached.
Russian President Vladimir Putin said on March 13 that Russia is ready to agree to the U.S.-proposed ceasefire in Ukraine but demands guarantees that Kyiv will not mobilize or train troops, nor receive military aid during it.
Reuters reported on March 12, citing Russian sources, that Russia is unlikely to agree to a temporary truce in Ukraine proposed by the U.S., feeling it has the upper hand on the battlefield and viewing the ceasefire as a trap.
Shortly after his inauguration, Trump threatened to impose tariffs and sanctions on Russia to force their hand in negotiations, saying "we can do it the easy way or the hard way." In the following weeks, Trump instead lashed out at Ukraine, claiming President Volodymyr Zelensky was "not ready for peace" and halting military aid to Ukraine and intelligence sharing with Kyiv.
Kateryna Denisova
(Updated: )
