Treasury imposes sanctions on Russian banks, financial officials

Russia’s third largest bank, Gazprombank, and its subsidiaries were hit with U.S. sanctions on Thursday, making it the largest bank not already targeted as the Russia-Ukraine war nears its three years mark.

The new sanctions are part of the Treasury Department’s Office of Foreign Assets Control and is targeting more than 50 “internationally connected” Russian banks, more than 40 Russian securities registrars and 15 Russian finance officials.

Treasury Secretary Janet Yellen said the sanctions Thursday will “further diminish and degrade” Russia in its ongoing war against Ukraine.

“This sweeping action will make it harder for the Kremlin to evade U.S. sanctions and fund and equip its military,” Yellen said in a statement. “We will continue to take decisive steps against any financial channels Russia uses to support its illegal and unprovoked war in Ukraine.”

The department hit Gazprombank Joint Stock Company, along with its six foreign subsidiaries. The Treasury said the company is a “conduit” for Russia to purchase military material and to pay its soldiers and families of those killed in combat. The company is already sanctioned by Australia, Canada, New Zealand and the United Kingdom.

The office is also issuing two licenses authorizing U.S. citizens to “wind down transactions” that involve Gazprombank.

An alert was issued “underscoring the sanctions risk” for foreign financial institutions that join Russia’s transfer system for financial messages and any institution that works with it can be designated as operating in the Russian economy.

The department also sanctioned 50 “small-to-medium” Russian banks to prevent the country from “abusing the international financial system” for its war.

On Thursday, the department also targeted more officials in the Central Bank of the Russian Federation. The individuals include those who promote alternate financial pathways for Russia to pay for “much-needed equipment and technology.”

Sanctions also have been imposed on four Russian nationals for operating in Russia’s financial sector. They include, Andrei Anisimov, who is Sberbank New Delhi’s deputy managing director. Three individuals with VTB Shanghai have been sanctioned, including Elena Fedkina, Ilya Lishenko and Roman Logov.

The sanctions come after President Biden authorized Ukraine to use U.S.-supplied missiles to strike further into Russia, as North Korean troops have entered the battlefield to aid Moscow.

National Security Advisor Jake Sullivan said the sanctions will “further curtail” Russia’s use of the international financial system and the United States will “continue to take all available steps” to imposing and enforcing sanctions against Russia.