- Sanctions freeze Gazprombank’s US assets, ban trade with Americans
- Treasury sanctions 50 Russian banks to limit international financial ties
- Yellen: Action hinders Kremlin’s military funding and equipment acquisition
Gazprombank is one of Russia’s largest banks and is partially owned by Kremlin-owned gas company Gazprom
(GAZP.MM), opens new tab. Ukraine has been urging the U.S. since the February 2022 invasion, to impose more sanctions on the bank, which receives payments for natural gas from Gazprom’s customers in Europe.
The sanctions made exemptions for transactions related to the Sakhalin-2 oil and gas project in Russia’s far east until June 28, 2025, according to an updated general license published by the Treasury Department on Nov 21. Several
Japanese firms buy liquefied natural gas from Sakhalin-2.
Days earlier, the Biden administration allowed Kyiv to use U.S.
ATACMS missiles to strike Russian territory. Ukraine
fired the weapons, the longest range missiles Washington has supplied for such attacks on Russia, on Tuesday – the war’s 1,000th day.
The Treasury also imposed sanctions on 50 small-to-medium Russian banks to curtail the country’s connections to the international financial system and prevent it from abusing it to pay for technology and equipment needed for the war. It warned that foreign financial institutions that maintain correspondent relationships with the targeted banks “entails significant sanctions risk.”
“This sweeping action will make it harder for the Kremlin to evade U.S. sanctions and fund and equip its military,” Treasury Secretary Janet Yellen said. “We will continue to take decisive steps against any financial channels Russia uses to support its illegal and unprovoked war in Ukraine.”
Gazprombank said Washington’s latest move would not affect its operations. The Russian embassy in Washington did not respond to requests for comment.
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