The US Department of the Treasury's Office of Foreign Assets Control announced new sanctions against the Russian financial sector. More than 50 Russian banks, including Gazprombank, connected with the international community, over 40 Russian securities registrars, and 15 Russian financial officials were subjected to restrictions.
«Today's sanctions targeting the largest Russian bank not previously listed, as well as dozens of other financial institutions and officials in Russia, will lead to further weakening and degradation of the Russian military machine. These extensive measures will make it more difficult for the Kremlin to circumvent American sanctions, finance, and equip its armed forces. We will continue to take decisive steps against any financial channels that Russia uses to support its illegal war in Ukraine» — the statement said.
Restrictions have been imposed on Gazprombank and its six foreign subsidiaries in Luxembourg, Hong Kong, Switzerland, South Africa, and Cyprus. The Treasury emphasizes that Gazprombank is used by the Russian Federation to purchase goods for the military-industrial complex, pay soldiers, and compensate their families. More than 50 banks, including small and medium-sized financial institutions that facilitate international transactions to support military actions, have been sanctioned. Banks from Moscow, Saint Petersburg, Vladivostok, and other regions are now restricted in their ability to conduct operations through international channels.
Sanctions have also been imposed against employees of VTB branches in Shanghai and Sberbank in New Delhi for participating in sanction evasion schemes.
The restrictions also affected more than 40 Russian securities registrars used to circumvent restrictions previously imposed on the National Settlement Depository.
The agency also issued a warning about the risks for foreign financial institutions joining the Russian alternative to SWIFT — SPFS. Joining SPFS will be considered a sanction risk associated with supporting Russia's financial sector.
The US sanctions affected 11 new representatives of the Central Bank of the Russian Federation involved in promoting SPFS and supporting the Russian Federation's international financial operations.