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8.1.7 Banks specific issues
The US Treasury Department (USTD) extended sanctions exemptions for several top Russian banks that are accepting payments for Russia’s energy exports on June 14. The list includes Russia’s central bank, Sberbank, VTB Bank, Alfa-Bank, and a few others, that will have their licenses allowing them to accept dollars until December 5. The US said the decision was to allow European partners more time to find alternative sources ahead of mooted total ban on Russian oil exports to Europe that is part of a sixth package of sanctions imposed on June 3. The current exemption imposed during earlier rounds of sanctions was due to expire on June 24. The renewed carve-out will "align our regulations with the implementation timing of the European Union's ban on crude oil" from Russia, a Treasury spokesperson told AFP. "This license will provide for an orderly transition to help our broad coalition of partners reduce their dependence on Russian energy as we work to restrict the Kremlin's revenue sources." The west has targeted Russian banks by banning them from using the SWIFT messaging service which in effect cuts them off from the international financial system and makes it impossible for them to deal in dollars.
Some Western banks are going too far in terms of European Union sanctions against Russia. Brussels will send letters to them to clarify that they can service deals in Russian grain, EU High
115 RUSSIA Country Report October 2020 www.intellinews.com