Russia loosens rules for fossil fuel payments by foreign countries to bypass US sanctions
2 weeks, 3 days ago

Russia loosens rules for fossil fuel payments by foreign countries to bypass US sanctions

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The loosening of payment rules comes as Russia grapples with economic challenges stemming from the sanctions Russian President Vladimir Putin has eased the process of making payments for fossil fuels for foreign countries. The move to ease payments, announced Thursday in an order by President Vladimir Putin, seeks to mitigate the financial impact of new US sanctions designed to curb Moscow’s revenue streams amid the war. However, the US Treasury’s sanctions now aim to restrict the bank’s ability to facilitate such payments, prompting the Kremlin to allow “other ways” of settling transactions between Russian suppliers and foreign buyers. Potential Workarounds and Risks While the Kremlin’s new payment mechanism provides a temporary workaround, Shagina warned that alternative financial institutions facilitating these transactions could also become targets of Western sanctions.

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