Russian oil companies are facing significant delays in receiving payments for crude and fuel, with banks in China, Turkey, and the United Arab Emirates (UAE) exercising increased caution due to U.S. secondary sanctions. These payment delays are impacting Kremlin revenue streams, leading to erratic financial inflows and enabling Washington to achieve its dual policy sanction objectives. By disrupting funds directed to the Kremlin in response to the conflict in Ukraine while maintaining global energy flows, the U.S. is leveraging financial institutions’ compliance measures to impede transactions with Russia. Banks in China, the UAE, and Turkey have raised their sanctions compliance standards, resulting in payment delays or rejections for transfers to Moscow. Financial entities are now requesting written assurances from clients that transactions do not involve individuals or entities on the U.S. SDN list. The tightening scrutiny has led to account suspensions and extended processing times for payments by banks such as First Abu Dhabi Bank (FAB), Dubai Islamic Bank (DIB), Mashreq bank, Ziraat Bank, Vakifbank, Industrial and Commercial Bank of China (ICBC), and Bank of China.
Russian Oil Payments Delayed as China, UAE, and Turkey Heighten Bank Scrutiny