In the face of Russia’s escalatory actions in its unprovoked war against Ukraine, including the importation of thousands of North Korean soldiers to Russia to join the fight, the United States is determined to provide the support Ukraine needs to prevail against Russia’s aggression.
As National Security Advisor Jake Sullivan said in a statement, “The United States remains committed to putting Ukraine in the strongest possible position, and we will continue to take all available steps to do so from surging security assistance to imposing and fulling enforcing sanctions and other restrictions on Russia’s war machine.”
To that end, on November 21, the United States imposed sanctions on 118 individuals and entities that operate in Russia’s financial services sector. Among the entities is Gazprombank, Russia’s largest remaining bank not previously designated by the United States. In a statement, the U.S. Treasury Department described Gazprombank as “a conduit for Russia to purchase military materiel for its war against Ukraine.” Gazprombank is also used by Russia to pay its soldiers, “including for combat bonuses, and to compensate the families of Russian soldiers killed fighting Putin’s brutal war against Ukraine.”
In addition to Gazprombank, over 50 internationally connected Russian banks, more than 40 Russian securities registrars and 15 Russian finance officials were also sanctioned. The sanctions mean that the designated firms and individuals are denied access to any property or financial assets held in the United States, and U.S. persons and companies are prohibited from doing business with them.
The Treasury Department also issued an alert describing sanctions risks related to Russia’s System for Transfer of Financial Messages, known as SPFS. “Russia has used and promoted SPFS ... to maintain financial connectivity, evade sanctions, and fund its war effort,” the Treasury Department wrote. “OFAC [Treasury’s Office of Foreign Assets Control] views joining SPFS after publication of this alert as a red flag and is prepared to more aggressively target foreign financial institutions that take such action.”
National Security Advisor Sullivan noted, “In response to Russian aggression, President Biden has led international efforts alongside the G7 and many of our allies and partners to hold Russia accountable for its aggression. Today’s sanctions will further curtail Russia’s abuse of the international financial system to help finance its war against Ukraine.”
