US ups pressure on Russia's financial sector, officials with new sanctions

By Michael Hernandez

WASHINGTON (AA) - The US sanctioned a slew of entities Thursday related to Russia's financial sector, including two prominent institutions.

In addition to blacklisting Russia's Public Joint Stock Company Rosbank, which the Treasury Department said the Russian Central Bank considers to be a "systemically important credit institution to the" Russian government, the agency announced it is designating 17 subsidiaries of Russia's VTB Bank Public Joint Stock Company.

VTB is Russia's second-largest bank and it was placed under US sanctions in February when the Kremlin embarked on its war against Ukraine.

“By sanctioning additional major Russian banks, we continue to deepen Russia’s isolation from global markets,” Brian Nelson, the agency's senior official for financial intelligence, said in a statement. “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.”

Public Joint Stock Company Rosbank was sanctioned by Canada and the UK earlier this year.

The State Department separately imposed sanctions on Russian billionaire Vladimir Potanin, whom it said is a close confidante of President Vladimir Putin, as well as three members of his immediate family and his company, Interros. His yacht, Nirvana, has also been listed as blocked property.

Potanin acquired Public Joint Stock Company Rosbank earlier this year, according to the agency.

The department is further blacklisting 29 Russian heads of regions and governors, as well as two of their family members and an entity owned by one family member. Six Russian proxy authorities in Ukraine are being designated, including the former Internal Affairs minister for breakaway rebels operating in the Donetsk region.

Oleksii Oleksandrovych Dykiy is accused of overseeing operations that led to the forced relocation of Ukrainians to Russia.

Five heads of Russian state-owned companies are also being sanctioned.

"The United States continues to impose costs on Russia for its war of aggression against Ukraine. Russia’s attacks have devastated Ukraine’s critical infrastructure and caused extraordinary death and destruction," Secretary of State Antony Blinken said in a statement.