Exclusive-Russia struggles to collect oil payments as China, UAE, Turkey raise bank scrutiny
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Russian oil firms are facing delays of up to several months in receiving payments for crude and fuel as banks in China, Turkey, and the UAE increase their scrutiny due to U.S. secondary sanctions. Several banks in these countries have raised their sanctions compliance requirements, resulting in delays or rejections of money transfers to Moscow. The banks are asking their clients to provide written guarantees that no person or entity from the U.S. SDN list is involved in the deal or is a beneficiary of a payment. The payment delays reduce revenue to the Kremlin and make them erratic, allowing the U.S. to disrupt money going to the Kremlin while not interrupting global energy flows. The increased scrutiny by banks in China, UAE, and Turkey is in response to a U.S. Treasury executive order published on December 22, 2023, warning of the possibility of secondary sanctions on Russia. Chinese, UAE, and Turkish banks have increased checks, asked for extra documentation, and trained more staff to ensure compliance with the price cap imposed by the West on Russian oil. The delays in payments have caused problems for Russian oil firms, with one source reporting a delay of two months for a payment. The payment delays have made it tough for both dollar and direct yuan-rouble transactions to be executed, taking weeks to process.

#Russia #OilPayments #China #Uae #Turkey #BankScrutiny #Sanctions #SecondarySanctions

https://www.investing.com/news/commodities-news/exclusiverussia-struggles-to-collect-oil-payments-as-china-uae-turkey-raise-bank-scrutiny-3354283