US imposes sanctions on last main SWIFT-associated Russian bank


(MENAFN) The US has imposed sanctions on Gazprombank and six of its international subsidiaries, cutting off Russia’s third-largest lender from the dollar-based financial system. Gazprombank, a key institution for energy-related transactions, was the last major Russian bank still connected to the SWIFT system. This move follows similar sanctions by the UK and Canada after the Ukraine conflict escalated in 2022, though the US had previously refrained due to the bank's role in facilitating gas payments between Russia and EU states.

The new sanctions freeze the bank's US assets and prevent it from conducting dollar transactions. However, Gazprombank stated that its operations in Russia would remain unaffected, although its UnionPay cards may not work abroad. The sanctions also target over 50 smaller Russian financial institutions, securities registrars, and officials. US Treasury Secretary Janet Yellen emphasized that these actions would further hinder Russia's ability to fund its military efforts. Additionally, the US warned international financial institutions against engaging with Russia’s alternative to SWIFT, SPFS, suggesting that joining it could lead to secondary sanctions.

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