Russia's elites, banks and 'friends' on US sanctions list

The United States have imposed a slew of sanction measures on Russia after the latter conducted military operation against the Ukrainian armed forces in the two regions, including Donetsk and Luhansk which were identified as independent countries by Moscow few days ago.

Russia elites, banks and 'friends' on US sanctions list

Anish Kumar

New Delhi, First Published Feb 25, 2022, 9:55 AM IST

The United States have imposed a slew of sanction measures on Russia after the latter conducted a military operation against the Ukrainian armed forces in the two regions, including Donetsk and Luhansk which were identified as independent countries by Moscow a few days ago.

The Joe Biden administration has already termed the attack as 'unprovoked' and 'unjustified' aggression on Ukraine.

"Today, I authorized a new round of sanctions and limitations in response to Putin's war of choice against Ukraine. We have purposefully designed these sanctions to maximize the long-term impact on Russia -- and to minimize the impact on the United States," US President Joe Biden said.

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"As a result of Putin's war of choice, Russia will face immediate and intense pressure on its economy, and massive costs from its isolation from the global financial system, global trade, and cutting-edge technology," the White House said.

It must be noted that the operation by Moscow was carried out when the United Security Council was debating the Ukraine issue after Russia identified Donetsk and Luhansk in Ukraine's Donbass region as separate countries.

Let's know about the fresh sanctions that the Biden administration has slapped on Russia in the wake of ongoing attacks on Ukrainian installations.

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* Snapping ties with Russia's largest financial institution, Sberbank, including 25 subsidiaries, by imposing correspondent and payable-through account sanctions. Sberbank cannot do any transactions in dollars. It is the largest bank in Russia that holds around one-third of the overall Russian banking sector's assets. The bank is heavily connected to the global financial system and is systemically critical to the Russian financial system.

* The United States has also imposed full blocking sanctions on Russia’s second-largest financial institution, VTB Bank, including 20 subsidiaries. The bank assets will be seized which touches the US financial and banking system. It will also prohibit US individuals from dealing with them. VTB has about one-fifth of the overall Russian banking sector’s assets.

* Among other financial and banking systems on which sanctions have been levied, include Bank Otkritie, Sovcombank OJSC, and Novikombank and 34 subsidiaries.

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* 13 Russian enterprises and entities have been restricted from new debt and equity. These entities are critical to the Russian economy with estimated assets of nearly $1.4 trillion. They will not be able to raise money through the US market.

* Additional sanctions have been imposed on Russian elites and their family members, including Sergei Ivanov (and his son, Sergei), Nikolai Patrushev (and his son Andrey), Igor Sechin (and his son Ivan), Andrey Puchkov, Yuriy Solviev (and two real estate companies he owns), Galina Ulyutina, and Alexander Vedyakhin.

* Other than this, the Biden administration has also slapped sanctions on those who are supporting the Russian government in the ongoing crisis.

* It has put sanctions on 24 Belarusian persons and businesses. The US has targeted Belarus’ military and financial capabilities by sanctioning its two state-owned banks, nine defence companies, and seven regime-connected official and elites.

* It has also put restrictions on Russia's import of technological goods which is critical to a diversified economy and Putin's ability to project power.

Also Read: Kremlin's Take: Ukrainian forces shelling civilians in Donbass, staging fake videos

Last Updated Feb 25, 2022, 9:55 AM IST