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.
The U.K. and Canada sanctioned Gazprombank during the first weeks of Russia's full-scale invasion in 2022. The U.S., however, had previously avoided strict measures against the bank.
"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," U.S. Treasury Secretary Janet Yellen said.
The U.S. had refrained from targeting Gazprombank to allow European countries to continue paying for Russian gas supplies, as the bank is the primary channel for energy-related payments, Financial Times reported.
"This sweeping action will make it harder for the Kremlin to evade U.S. sanctions and fund 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 war in Ukraine.
The new U.S. sanctions will close one of Russia's few remaining avenues for international banking, barring Gazprombank from conducting transactions in dollars.
In addition to Gazprombank, the U.S. Treasury Department's Office of Foreign Assets Control (OFAC) has sanctioned over 50 Russian banks connected to the international financial system, more than 40 securities registrars, and 15 financial officials.
OFAC also issued an alert detailing the sanctions risks associated with Russia’s financial messaging system, which the Kremlin is using to evade existing restrictions.
Chris York
