Kremlin spokesman Dmitry Peskov confirmed: there are problems with payments for oil sold

Due to the fact that banks in China, Turkey and the UAE fear US sanctions, Russian companies cannot receive payments for the oil they sell.

According to Reuters, banks require guarantees from clients that they are not on the sanctions list. Banks in the UAE have blocked accounts linked to Russian trade, while China's ICBC and Bank of China, and Turkey's Ziraat and VakifBank continue to process payments, but it is taking a long time. Delays in payments reduce the income of the Russian Federation and make the financial situation unstable. It's getting harder to export oil notes publication, with increased control over banks in these countries.

Russian oil companies are facing months of payment delays and banks are becoming more cautious due to secondary US sanctions. The situation allows Washington to achieve dual sanctions goals – to prevent the flow of funds to the Russian Federation in order to punish it for the war in Ukraine and at the same time not to interrupt global energy flows.

Several banks in China, the UAE and Turkey have tightened their sanctions compliance requirements in recent weeks, leading to delays or even denials of money transfers to Russia. Reuters notes:

“Banks, wary of secondary US sanctions, have begun requiring their clients to provide written assurances that no person or entity on the US SDN (Special Designated Nationals) list is involved in the transaction or is not a beneficiary of the payment.”

Kremlin spokesman Dmitry Peskov confirmed that there were problems with payments when asked about banks in China slowing down payments.

Back in December 2023, the US Treasury issued an order in which it warned of the possible application of sanctions for evading Russia's compliance with price restrictions against foreign banks and called on them to strengthen control over compliance with the requirements. This was the first direct warning about the possibility of secondary sanctions against Russia, which put it on par with Iran in some areas of trade, the newspaper writes. In accordance with this, banks in China, the UAE and Turkey working with the Russian Federation have stepped up checks and began to require additional documentation.

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