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US imposes sanctions on more than 50 Russian banks, including Gazprombank

Umito November 22, 2024

The U.S. Treasury Department imposed sanctions on dozens of Russian banks, including Gazprombank, securities registrars and financial officials, according to a Nov. 21 statement.

United Kingdom and Canada sanctioned Gazprombank in the first weeks of Russia’s full-scale invasion in 2022. The United States, however, had previously avoided taking strict action against the bank.

“Today’s sanctions aim RussiaRussia’s largest non-designated bank, along with dozens of other financial institutions and officials in Russia, will further shrink and deteriorate Russia’s financial situation. war machine,” said US Treasury Secretary Janet Yellen.

The United States has refrained from targeting Gazprombank to allow European countries to continue paying for Russian gas supplies, with the bank being the main energy payment channel, the Financial Times reported.

“This radical action will make it more difficult for the Kremlin to evade US sanctions and to finance and equip its military.”

The outlet also noted that Russia used Gazprombank to purchase military equipment, pay soldiers and compensate the families of those killed in the Ukraine war.

The new US sanctions will close one of the last avenues of international banking in Russia, banning Gazprombank from transacting in dollars.

In addition to Gazprombank, the Office of Foreign Assets Control (OFAC) of the US Treasury Department has sanctioned more than 50 Russian banks linked to the international financial system, more than 40 securities registrars and 15 financial officials.

OFAC also issued an alert detailing sanctions risks associated with Russia’s financial messaging system, which the Kremlin uses to circumvent existing restrictions.