**US Sanctions Hit Russia’s Energy Sector**
The US has taken a big step to hurt Russia’s energy business. Last week, the government let an important exemption expire. This exemption allowed Russian banks to use US payment systems for energy transactions.
**Why is this important?**
This move closes a key financial channel for Russian oil and gas exports. It makes it harder for Russia to get paid for its energy sales. The US is trying to pressure Moscow into agreeing to a ceasefire deal in Ukraine.
**What’s happening with the sanctions?**
The Biden administration had put in place a license that allowed some Russian banks to keep receiving energy payments in US dollars. This was done to prevent sharp increases in energy prices and avoid an energy crisis. However, this license expired on March 12.
**Experts weigh in**
Ihor Burakovsky, head of the Institute for Economic Research and Policy Consulting, said: “Allowing the license to expire is painful for Russia.” He added that oil and gas is a key sector of the Russian economy, and any restrictions create serious problems for their economies.
James Angel, an associate professor at Georgetown School University, noted: “This makes it harder for Russia to get paid for their energy. They have to go to more trouble to feed their war machine.”
**What does this mean for US-Russia relations?**
The new sanctions could be a signal from the Trump administration that it is ready to use sanctions to exert pressure on Moscow to agree to both a ceasefire and a peace deal in Ukraine.
Read More @ kyivindependent.com