The US Department of the Treasury Office of Foreign Assets Control (OFAC) has sanctioned Russia’s Rosbank and 17 VTB subsidiaries to limit Russia’s ability to fund the Ukraine invasion.
The US also imposed sanctions on Russian billionaire Vladimir Potanin, who is believed to have close ties to Russian President Vladimir Putin.
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In sanctioning Rosbank, the Treasury highlighted that the bank is a “systemically important credit institution” in Russia.
Acquired by oligarch Potanin early in 2022, the bank has already been sanctioned by the UK and Canada.
Potanin’s investment holding firm Interros purchased the bank from French lender Societe Generale.
The deadline to wind down transactions involving Rosbank has been set at 15 March 2023.
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By GlobalDataBesides, the US sanctioned 17 VTB units including VTB Leasing Joint Stock Company, Aktsionernoe Obshchestvo SG-Development, ITC Consultants Cyprus Limited, Joint Stock Company Citybike, among others.
This follows on from its sanction of the parent firm.
“VTB Bank was designated in February 2022 and all entities owned 50 percent or more, directly or indirectly, by VTB Bank are blocked by operation of law pursuant to E.O. 14024, even if not designated by OFAC,” the Treasury noted.
US Department of the Treasury under secretary for Terrorism and Financial Intelligence Brian E. Nelson said: “By sanctioning additional major Russian banks, we continue to deepen Russia’s isolation from global markets.
“Today’s designations by the United States, together with actions taken by our international partners, will further inhibit the Putin regime’s ability to fund its horrific war against Ukraine.”
Russia has been seeing a mass exodus of foreign companies after the Ukraine conflict.
Recently, VTB head Andrey Kostin unveiled plans to expand in other ‘friendly’ nations.
The bank was recently also in the news for facing what it claims to be an ‘unprecedented’ cyberattack from abroad.
