U.S. Slaps Gazprombank with Major Sanctions Before Biden's Exit

The United States has imposed stringent sanctions on Russia's Gazprombank as President Joe Biden intensifies measures against Moscow for its Ukraine invasion. The sanctions hinder Gazprombank's energy-related transactions involving the U.S. financial system, impacting its operations globally.

In a significant move, the United States imposed fresh sanctions on Russia's Gazprombank, escalating punitive measures against Moscow in response to its ongoing invasion of Ukraine. The sanctions, announced by the Treasury Department, specifically target Gazprombank's new energy-related transactions that engage with the U.S. financial system, effectively freezing its assets within the United States and prohibiting its trade with American entities.

These sweeping measures come as Ukraine has consistently called for tougher constraints on Gazprombank, a vital conduit for payments to Russia's state-owned gas giant, Gazprom. Significantly, certain transactions related to the Sakhalin-2 oil and gas project in Russia's Far East are exempt until June 2025, a detail that reflects the strategic considerations behind these sanctions.

Despite these constraints, Gazprombank maintains that U.S. measures will not impact its operations. However, financial institutions worldwide are likely to rethink engagements, aligning with the Biden administration's definitive move to sap Russia's financial and logistical efforts in the conflict. The sanctions are part of a broader strategy to bolster Ukraine's battlefield position and reduce the Kremlin's ability to fund and equip its military.

(With inputs from agencies.)