US Expands Russia Sanctions, Finally Targeting Gazprombank and Banking Network
The United States has imposed sweeping sanctions on Russia’s financial sector, targeting Gazprombank and more than 100 other institutions in its latest effort to restrict Moscow’s ability to fund its war in Ukraine.
The Treasury Department’s Office of Foreign Assets Control designated Gazprombank, which Russia uses to purchase military equipment and pay combat bonuses to soldiers, along with its six foreign subsidiaries operating from Luxembourg, Hong Kong, Cyprus, Switzerland, and South Africa.
“Today’s sanctions targeting Russia’s largest remaining non-designated bank, as well as dozens of other financial institutions and officials in Russia, will further diminish and degrade Russia’s war machine,” Treasury Secretary Janet Yellen said in a statement.
The measures include more than 50 small and medium-sized Russian banks and over 40 securities registrars. The registrar sanctions address Moscow’s attempt to evade previous restrictions on its National Settlement Depository by transferring securities to local registrars.
Treasury officials also warned foreign financial institutions about joining Russia’s SPFS, a domestic alternative to the SWIFT global messaging system, stating that participation could trigger US sanctions.
The action targets 15 finance officials, including 11 from Russia’s central bank. Also designated were four Russian banking executives: Andrei Anisimov of Sberbank’s New Delhi branch, and Elena Fedkina, Ilya Lishenko, and Roman Logov of VTB Bank’s Shanghai office.
To minimize market disruption, the Office of Foreign Assets Control issued licenses allowing firms to wind down Gazprombank transactions and divest from its securities. Exemptions remain for transactions involving agricultural products, medicine, and humanitarian aid.
The action aligns with measures already taken by US allies Australia, Canada, New Zealand, and the United Kingdom against Gazprombank.
Treasury officials warned that foreign banks maintaining correspondent relationships with newly sanctioned institutions face significant compliance risks.
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