Treasury to Extend Sanctions Carve-Out for Russian Energy Payments
WASHINGTON—The Treasury Department extended a sanctions carve-out allowing U.S. financial institutions to process transactions related to Russian energy sales for nearly six months as the U.S. seeks to minimize further disruption in global energy markets.
The sanctions exemption, which had been set to expire on June 24, will remain in place until Dec. 5, when the European Union’s ban on imports of Russian oil is set to go into place. While the U.S. has already banned the import of Russian energy, many energy sales abroad are denominated in dollars. The continuation of the carve-out will allow U.S. financial institutions to process payments for Russian energy in other countries.