Mar 27, 07:05 AM

Russian Oil Firms Face Months-Long Payment Delays from China, Turkey, UAE Banks

Russian oil firms are experiencing delays of up to several months in receiving payments for crude oil and fuel from banks in China, Turkey, and the United Arab Emirates (UAE), as reported by Reuters on March 27. This development, confirmed by eight sources familiar with the matter, is due to the banks' increased caution over U.S. secondary sanctions. The situation indicates a significant impact on Russia's ability to collect revenues from its oil exports. These delays, attributed to the banks' enhanced sanctions compliance measures, including requests for written guarantees to ensure transactions do not violate sanctions, are expected to reduce Kremlin revenues and contribute to the instability of Russia's economy.