US sanctions Gazprombank, expands measures on Russian financial sector

In a significant move to restrict Russia’s financial capacity to sustain its war in Ukraine, the United States has imposed sanctions on Gazprombank, Russia’s third-largest bank, along with more than 50 additional Russian financial institutions, over 40 securities registrars, and 15 financial officials. The measures, announced on November 21, target key players in Russia’s economic operations as President Joe Biden intensifies pressure on Moscow in the final months of his term.

Gazprombank, a crucial facilitator of Russian energy exports and military payments, had previously been exempted from sanctions due to concerns over potential disruptions to global energy supplies. However, Washington has now acted to close this loophole, alongside warning international banks against participating in Russia’s alternative to the SWIFT banking system.

The Biden administration’s latest sanctions aim to halt cross-border payments for military goods and technology imports, further isolating Russia from global financial systems. “Today’s action reaffirms the US commitment to curtail Russia’s ability to use the international financial system to conduct its war against Ukraine,” said State Department spokesman Matthew Miller.

Ukrainian President Volodymyr Zelenskiyy expressed gratitude for the measures, describing them as a critical step toward dismantling Russia’s “war chest.”

This move aligns with months-long calls from Ukraine and its allies for stronger action against Russia’s banking sector, highlighting the Kremlin’s continued ability to bypass existing sanctions to procure dual-use technologies and fund military operations.