The U.S. Treasury General License now permits payments connected to the purchase of food, fertilizers, drugs, and medical equipment in Russia, as reported on the department’s site.
In addition, the United States has lifted restrictions on seed trading operations and has removed sanctions on Gazprom Germania GMBH, the former Gazprom subsidiary, and on Alfa Bank in Kazakhstan.
These goods were removed from US sanctions on February 24. Sanctions are no longer in force for inorganic fertilizers, seeds and reproductive materials, foodstuffs, vitamins and minerals, food additives and vitamins, bottled water, livestock, and animal feed.
Restrictions on medical products, medical equipment and accessories and related software have also been lifted. Export, import, and re-export are now allowed.
In March, the Treasury updated the general license again to clarify rules for importing Russian goods and exporting American goods to Russia. The Bank of Russia noted that if the National Wealth Fund, the Russian Ministry of Finance, or any sanctioned Russian banks participate in processing these transactions, those dealings are prohibited.
Reasons for relaxation
Sources cited by the newspaper Kommersant later suggested that the decision to remove fertilizers from sanctions might reflect a global shortage of fertilizer caused by logistical problems. The three largest container carriers—MSC, Maersk, and CMA CGM—stopped transporting goods from Russia as of March 1. As shipments from smaller companies continued, buyers abroad feared shortages in essential supplies.
Industry representatives in the agrochemical market argued that lifting sanctions could help restore usual logistics. They predicted that major container lines would resume carrying critical goods and humanitarian cargo from Russia, supporting steady supply chains.
Even though tax exemptions on Russian fertilizers were discussed, anti-dumping measures remain in place in both the United States and Europe.
In the United States, Russian content accounts for about 6 percent of potassium, 20 percent of diammonium phosphate, and 13 percent of carbide fertilizers. Europe depends more heavily on Russian chemical inputs, a factor that shapes regional market dynamics.
Analysts forecast that a shift in Russian producers toward Asian markets could alter global commodity flows. Such changes may result in fertilizer shortages in Europe and North America for several months as trade patterns adjust.
Cross-border transport expert Maria Lyubimova commented that the license for Russian fertilizers by the U.S. Treasury signals some flexibility in restrictive measures and points to the possibility of easing rules in sensitive areas when justified by economic and humanitarian considerations.