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America issues warning to sanction nations that host Russian banks
(MENAFN) The United States Treasury Department has issued a stark warning that countries permitting Russian banks to establish local branches could face secondary sanctions. This move, announced on Friday by the Treasury's Office of Foreign Assets Control (OFAC), is part of a broader strategy to tighten economic pressure on Moscow and curb efforts to evade existing sanctions.
The Treasury Department's statement highlights concerns that Russia is using sophisticated methods to bypass international sanctions by opening new overseas branches and subsidiaries of its financial institutions. These new setups are believed to facilitate trade and transactions that help Russia access dual-use goods, which are items that can have both civilian and military applications, imported from third-party countries.
The United States Treasury has urged foreign financial regulators and institutions to exercise caution when dealing with any branches or subsidiaries of Russian banks, especially those not yet sanctioned. It has warned that it possesses various enforcement tools to target and dismantle these new evasion channels. This precautionary measure is specifically directed at Russian financial entities that have not been subjected to sanctions yet.
Since the intensification of the Ukrainian conflict in February 2022, Washington has implemented several rounds of sanctions targeting interactions between foreign banks and Russian financial organizations. Last December, President Joe Biden further escalated these measures by instituting secondary sanctions against financial institutions believed to support Russia’s defense sector.
At that time, the United States administration blacklisted over 4,500 Russian entities in a bid to dissuade foreign banks from engaging with them, amplifying the pressure on Russia's economic and military operations.
The Treasury Department's statement highlights concerns that Russia is using sophisticated methods to bypass international sanctions by opening new overseas branches and subsidiaries of its financial institutions. These new setups are believed to facilitate trade and transactions that help Russia access dual-use goods, which are items that can have both civilian and military applications, imported from third-party countries.
The United States Treasury has urged foreign financial regulators and institutions to exercise caution when dealing with any branches or subsidiaries of Russian banks, especially those not yet sanctioned. It has warned that it possesses various enforcement tools to target and dismantle these new evasion channels. This precautionary measure is specifically directed at Russian financial entities that have not been subjected to sanctions yet.
Since the intensification of the Ukrainian conflict in February 2022, Washington has implemented several rounds of sanctions targeting interactions between foreign banks and Russian financial organizations. Last December, President Joe Biden further escalated these measures by instituting secondary sanctions against financial institutions believed to support Russia’s defense sector.
At that time, the United States administration blacklisted over 4,500 Russian entities in a bid to dissuade foreign banks from engaging with them, amplifying the pressure on Russia's economic and military operations.
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