The USA introduced sanctions against Gazprombank and the management of the Central Bank of the Russian Federation. Zelensky thanked

The United States introduced new sanctions against Russia, including against Russia’s Gazprombank, and took additional measures to limit Russia’s use of the international financial system, according to a statement posted on the website of the US Treasury Department on Thursday. UNN.

Details

“The Ministry of Finance imposes sanctions against dozens of Russian banks, securities registrars and financial officials; the Office of Foreign Assets Control (OFAC) issues a warning about the risks of joining the Russian system for transmitting financial messages,” the message reads.

The agency stated that today OFAC “took another important step towards fulfilling the commitments made by G7 leaders to limit Russia’s use of the international financial system to continue the war against Ukraine.”

“OFAC’s actions include sanctions against Gazprombank, more than 50 international Russian banks, more than 40 Russian securities registrars, and 15 Russian financial officials. OFAC also issues an alert outlining the sanctions risks associated with Russia’s Financial Reporting System (SPFS), which the Kremlin created and uses to circumvent sanctions,” the US Treasury Department said in a statement.

“Today’s sanctions, targeting Russia’s largest remaining unsanctioned bank, as well as dozens of other financial institutions and officials in Russia, will further weaken and degrade the Russian war machine. These sweeping actions will make it more difficult for the Kremlin to evade US sanctions, as well as financing and equipping its military, – said US Treasury Secretary Janet Yellen. – We will continue to take decisive measures against any financial channels that Russia uses to support its illegal and unprovoked war in Ukraine.

As Reuters points out, the new US sanctions against Russia’s Gazprombank effectively remove this one of Russia’s largest banks from the US banking system, ban their trade with Americans and freeze their assets in the US.

Gazprombank is partially owned by the Kremlin-owned gas company Gazprom.

“Gazprombank” is a channel for Russia’s purchase of military equipment for the war against Ukraine, the US Treasury Department said. The Russian government also uses the bank to pay its soldiers, including combat bonuses, and to compensate the families of its soldiers who died in the war.

The US Treasury also imposed sanctions against 50 small and medium-sized Russian banks.

The move is intended to limit the country’s ties to the international financial system and prevent it from abusing it to pay for technology and equipment needed for war.

The US Treasury has warned that foreign financial institutions that maintain correspondent relationships with sanctioned banks face a “significant risk of sanctions”.

Along with the sanctions, the U.S. Treasury Department also issued two new general licenses that allow U.S. entities to wind down transactions involving Gazprombank, among other financial institutions, and take steps to repudiate debt obligations or shares issued by Gazprombank.

Officials of the Central Bank of the Russian Federation were also sanctioned, including First Deputy Governors of the Central Bank of Russia Dmytro Tulin and Volodymyr Chistyukhin, Alla Bakina, Head of the National Payment Systems Department of the Central Bank of the Russian Federation, and Elizaveta Danilova, Head of the Financial Stability Department of the Central Bank of the Russian Federation.

Reaction of Ukraine

The President of Ukraine, Volodymyr Zelenskyi, reacted to the decision of the US President Joe Biden’s administration.

“I am grateful to US President Joseph Biden and his administration for today’s strong package of financial and banking sanctions aimed at the Russian economy and its military budget. Thanks to the measures that affected Gazprombank, one of Russia’s largest banks, as well as its six subsidiaries companies and more than 50 other financial institutions, the US has dealt a significant blow to Putin’s war machine and further isolated his bloody, corrupt economy from the world market, – Zelenskyy noted in X. – This is happening at a crucial moment, when Russia is resorting to rocket-rattling weapons in a desperate attempt destroy what remains of international law. Justice demands that the aggressor pay the full price for this war.”

“We are sincerely grateful for America’s leadership in protecting freedom and for the steadfast bipartisan support of Congress, which continues to advocate for strong and decisive sanctions. Together, we must weaken tyranny and strengthen global security,” Zelenskyy emphasized.