US sanctions 17 subsidiaries of Russian VTB Bank

By Al Mayadeen English
Source: Agencies
15 Dec 2022 19:57
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US Treasury wages new sanctions against Russian institutions.

The Russian VTB Bank.

The US Office of Foreign Assets Control has waged sanctions on 17 subsidiaries of Russia's VTB Bank, the latest addition to the plethora of US sanctions waged against Russian institutions, as announced by the US Treasury Department on Thursday.

“OFAC is also adding 17 subsidiaries of VTB Bank Public Joint Stock Company (VTB Bank), Russia’s second-largest bank, to the SDN [Specially Designated Nationals and Blocked Persons] List. 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… even if not designated by OFAC,” the Treasury Department said in a statement.

The action will help strengthen compliance with existing sanctions, according to the statement by The Treasury.

In addition to the sanctions on VTB subsidiaries are new measures against Rosbank and Russian businessman Vladimir Potanin, whose Interros conglomerate has a connection to Rosbank.

Washington also issued a general license that authorizes only certain energy-related transactions with Russian entities through May 16, 2023, according to the statement.

"Except as provided in paragraph (c) of this general license, all transactions prohibited by Executive Order (E.O.) 14024 involving one or more of the following entities that are related to energy are authorized, through 12:01 a.m. eastern daylight time, May 16, 2023," the license read.

The list of entities includes State Corporation Bank for Development and Foreign Economic Affairs Vnesheconombank, Public Joint Stock Company Bank Financial Corporation Otkritie, Sovcombank Open Joint Stock Company, Public Joint Stock Company Sberbank of Russia, VTB Bank Public Joint Stock Company, Joint Stock Company Alfa-Bank, Public Joint Stock Company Rosbank, and the Central Bank of the Russian Federation, the release said.

Last week, the EU's executive arm proposed imposing new sanctions on Russia's armed forces, three banks, and several officials, as part of the bloc's anti-Russia sanctions over the war in Ukraine.

The EU has already imposed eight waves of unprecedented anti-Russia sanctions since the start of the Ukraine war in February, including targeting Russian key oil exports.

As EU countries discuss the new measures, there is concern that Hungary could oppose the ninth wave of anti-Russia sanctions as it is locked in a bitter standoff with Brussels over frozen EU funds.

The EU, along with its partners in the G7, introduced measures last week aimed at capping the price of Russian oil sold on the world market. The EU's ban on seaborne crude imports from Russia also came into force, after initially being agreed upon early this year.