US hits Gazprombank with sweeping sanctions in latest crackdown

According to a statement from National Security Advisor Jake Sullivan, the United States is introducing extensive sanctions on more than 50 financial institutions to undermine Russia's capacity to utilize the global financial system for financing and carrying out its aggressive actions against Ukraine.

He emphasised that among the institutions subject to restrictions is Gazprombank, Russia's largest bank, which to date had not been sanctioned by the US.

Gazprombank is the third largest bank in Russia, through which Moscow settles payments for military equipment purchases and pays soldiers and their families. Although it had been partially sanctioned, it had not been fully blocked and excluded from the SWIFT system, a measure applied to other banks. This was due to concerns about the impact of sanctions on further Russian gas supplies to Europe.

According to a statement from the US Treasury Department, over 50 Russian banks with international ties, more than 40 securities registries used by Russia to bypass restrictions, and 15 individuals from the management of Russian state banks have been added to the sanctions list.

Additionally, a warning alert was issued to companies about the sanctions risk associated with using the Russian SPFS payment system, which is intended to be an alternative to the international SWIFT system.

The sanctions introduced today are aimed at curbing Russia's exploitation of the global financial system to fund its war in Ukraine. The United States is committed to strengthening Ukraine's position and will continue to take decisive actions, including significantly boosting security aid and rigorously implementing sanctions and other measures to counter Russia's war efforts, according to Sullivan's statement.