US imposes sanctions on largest previously unsanctioned Russian bank

(Patria) - The US Department of the Treasury announced a new set of sanctions yesterday targeting the Russian financial sector and its ability to finance its war with Ukraine, affecting Gazprombank, as well as many other internationally connected financial institutions, entities, and individuals.

In a statement released on its website, the Treasury Department's Office of Foreign Assets Control states that the sanctions target Gazprombank - Russia's largest remaining unsanctioned bank - plus more than 50 other Russian banks, more than 40 Russian securities registrars, and 15 Russian financial officials.

The Treasury Department stated that Gazprombank is a channel for Russia to purchase military equipment for its war against Ukraine, and the Russian government also uses the bank to pay its soldiers.

Australia, Canada, New Zealand, and Britain have previously sanctioned Gazprombank. Sanctions mean that all assets and interests of targeted institutions, entities, or individuals are blocked.

In the statement, the US Secretary of the Treasury said that the sanctions will "further diminish and degrade Russia's war machine. This comprehensive action will make it more difficult for the Kremlin to evade US sanctions and to finance and equip its military."

US National Security Advisor Jake Sullivan said the new sanctions are part of a promise President Joe Biden made in September to provide additional assistance and actions to "help Ukraine as it continues to resist Russia's aggression."

The Biden administration is expected to increase aid to Ukraine before the president leaves office. President-elect Donald Trump and leading Republicans have suggested they will reduce funding to Ukraine after Trump takes office on January 20.