Washington DC (TDI): The United States President Donald Trump has announced a ban on all Russian oil exports to the European Union (EU). This action aims to further constrain Russia’s financial resources amid ongoing geopolitical tensions.
A treasury spokesperson said that General License 8L expired at 12:01 EDT on Wednesday.
The Biden administration granted the license on January 10 to clear remaining transactions as it banned energy financing deals with Russian banks, including Sberbank, VTB and the Central Bank of the Russian Federation.
This development effectively restrict these institutions from accessing U.S. payment systems for major energy transactions, thereby countering Russia’s ability to export oil to the EU.
This action continues what the Trump administration started to reduce Russia’s earnings from energy sales.
In December 2024, President Trump urged the EU to increase its purchases of American oil and gas. He warned of potential tariffs on European exports to the U.S. if the bloc failed to comply with the US.
The EU has been actively seeking alternatives to Russian energy. In May 2022, EU leaders agreed on a partial embargo targeting Russian oil imports delivered by sea, with the aim of reducing reliance on Russian energy sources.
The U.S. ban aligns with these efforts, reinforcing the collective resolve to limit Russia’s influence over global energy markets.
Read More: Trump Threatens Russia with Sanctions, Tariffs
The US Senate Foreign Relations Committee Chairman, Sen. Jim Risch, R-Idaho applauded President Trump mentioning that this was a great step by President Trump to increase pressure on Russia.
Yesterday, President Trump closed a sanctions loophole created by the Biden Administration that allowed the sale of Russian oil and gas to Europe, despite the fact that Russian energy revenue funds its war in Ukraine. This was a great step by President Trump to increase pressure… https://t.co/FsLieWSOVS
— Senate Foreign Relations Committee Chairman (@SenateForeign) March 14, 2025
The sanctions also banned dollar transactions with Russian energy firms Gazprom Neft, opens new tab and Surneftegas as well as 183 vessels that have shipped Russian oil, including many in the so-called shadow fleet of aging tankers operated by non-Western companies.
President Trump emphasized that this bold action is part of a broader strategy to apply maximum economic pressure on Russia.
Read More: US Targets Russian Oil with New Sanctions
The administration remains committed to supporting Ukraine and upholding international norms, with the ban on Russian oil exports serving as a critical component of this strategy.
Areeba Kanwal is a contributor at The Diplomatic Insight and has passion for International Relations and diplomacy.
