US bans exports of oil refining technology to Russia, Belarus

The US will impose new export controls on technology needed by Russia and Belarus to modernize their oil refining sectors, the Biden administration said March 2 as it continued to expand financial penalties against Moscow for the Ukraine invasion.

The latest penalties include a measure to extend all export controls put in place for Russia to also cover Belarus, to prevent deliveries from being diverted through the Kremlin-supporting neighbor.

"As a result of our historic, multilateral coordination, Russia has become a global economic and financial pariah," the White House said in a statement. "Over 30 countries representing well over half the world's economy have announced sanctions and export controls targeting Russia. Russia is further isolated from the international financial and trade system."

Crude oil benchmarks surged further March 2 as traders sough alternatives to Russian grades and OPEC+ stuck to its output strategy.

Key benchmark Dated Brent closed March 2 at $117.30/b, a nine-year high, as prompt supplies tighten further, according to Platts assessments by S&P Global Commodity Insights.

Highlights of US sanctions against Russia:

• Central Bank of Russia blocked from any assets held in US financial institution or intervening in foreign exchange markets.
• Disconnecting certain Russian banks from international financial messaging service SWIFT.
• Sberbank, Russia's largest bank: US banks must close any "correspondent or payable-through" accounts and reject any future transactions within 30 days.
• VTB, Russia's second-largest bank: full blocking sanctions instantly froze and blocked any assets held in US financial institutions.
• General License 8: six sanctioned banks—Central Bank of Russia, Sberbank, VTB, VEB, Otkritie, Sovcombank—can continue energy-related transactions until June 24. Waiver defines energy very broadly.
• Foreign investment restrictions on 13 major state-owned firms, including gas producer Gazprom; oil producer and refiner Gazprom Neft; pipeline operator Transneft; energy financier Gazprombank; agriculture financier Russian Agricultural Bank; shipping company Sovcomflot; and Russian Railways.
• Banning exports of oil refining technology to Russia and extending all export controls to neighboring Belarus.
• Individual sanctions including against Russian President Vladimir Putin, Russian Foreign Minister Sergey Lavrov and Rosneft CEO Igor Sechin.