By The Financial District
Mar 282 min
Russian oil firms face delays of up to several months to be paid for crude and fuel as banks in China, Turkey, and the United Arab Emirates (UAE) become more wary of US secondary sanctions, eight sources familiar with the matter said, Aizhu Chen, Engen Tham, and Ziyi Tang reported for Reuters.
Several banks in China, the UAE, and Turkey have boosted their sanctions compliance requirements in recent weeks, resulting in delays or even the rejection of money transfers to Moscow.
Payment delays reduce revenue to the Kremlin and make them erratic, allowing Washington to achieve its dual policy sanction goals - to disrupt money going to the Kremlin to punish it for the war in Ukraine while not interrupting global energy flows.
Several banks in China, the UAE, and Turkey have boosted their sanctions compliance requirements in recent weeks, resulting in delays or even the rejection of money transfers to Moscow, according to the eight banking and trading sources, Florence Tan, Can Sezer, Jonathan Spicer, and Federico Maccioni also reported for Reuters.
Banks, cautious of the US secondary sanctions, started to ask their clients to provide written guarantees that no person or entity from the US SDN (Special Designated Nationals) list is involved in a deal or is a beneficiary of a payment.
The sources asked not to be named due to the sensitivity of the issue and because they are not allowed to speak to media.
In the UAE, banks First Abu Dhabi Bank (FAB) and Dubai Islamic Bank (DIB) have suspended several accounts linked to the trading of Russian goods, two sources said, Nidhi Verma, Hadeel Al Sayegh, and Kevin Huang reported for Reuters.