Russia's Gazprombank and its six foreign subsidiaries faced U.S. sanctions on Thursday, as part of efforts to hinder Russia's ability to evade the numerous sanctions imposed since the invasion of Ukraine in February 2022. Treasury Secretary Janet Yellen stated that targeting Russia's largest remaining non-sanctioned bank would impede Russia's military efforts and make it harder for the Kremlin to evade U.S. sanctions.
Over 50 internationally connected Russian banks, 40 Russian securities registrars, and 15 Russian finance officials were also hit with sanctions. President Joe Biden authorized Ukraine to use U.S.-supplied missiles to strike deeper inside Russia, while the Pentagon announced sending Ukraine at least $275 million in new weapons.
The sanctions aim to deny access to any property or financial assets held in the U.S. and prevent U.S. companies and citizens from engaging in business with the sanctioned entities. Canada and the United Kingdom had previously sanctioned Gazprombank.
Gazprombank has been identified as a means for Russia to fund its military operations against Ukraine, including paying soldiers and compensating families of deceased soldiers. The bank also played a role in handling payments for Russian natural gas supplies to Europe.
Europe, which was heavily reliant on Russian gas, has diversified its energy sources, reducing Russian gas imports to about 18%. Russia's cutoff of most supplies in 2022 led to an energy crisis in Europe. European governments and utilities have secured alternative supplies, including liquefied gas from the U.S. and Qatar.
Ukraine plans to halt Russian gas flows through a pipeline to Europe, accounting for about 4% of Europe's gas imports. The EU aims to end all Russian gas imports by 2027, setting a nonbinding goal to achieve energy independence.
