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USA sanctions the Russian bank "Gazprombank"

2024-11-21 17:53:31Kosova&Bota SHKRUAR NGA REDAKSIA VOX
USA sanctions the Russian bank "Gazprombank"
Gazprombank

The US Treasury Department has sanctioned Russia's third largest bank, Gazprombank.

The ruling announced on Thursday bars Russia's state-owned Gazprombank, the main conduit for Russian energy payments, and its six international subsidiaries from the US-dominated global financial system.

Russia has used Gazprombank as a conduit to buy military equipment for the war in Ukraine, as well as to pay soldiers and compensate families of those killed in action, according to the US.

"This sweeping action will make it more difficult for the Kremlin to evade US sanctions and fund and equip its military," said US Treasury Secretary Janet Yellen.

"We will continue to take decisive steps against any financial channel that Russia uses to support its illegal and unprovoked war in Ukraine," she said.

The United Kingdom and Canada imposed sanctions on Gazprombank in the first weeks of the war in 2022, the Financial Times reports.

The United States had previously avoided sanctions largely so that European countries could continue to pay for Russian gas supplies.

However, during the war, the EU has significantly reduced its dependence on Russian pipeline gas from 40 percent to less than 8 percent of the bloc's energy mix.

The new sanctions come as contracts for the transit of Russian gas through Ukraine to European countries, including Slovakia and the Czech Republic, expire on January 1. After the Nord Stream pipelines connecting Germany to Russia via the Baltic Sea were blown up in 2022, this became one of the only two routes by which the Russian pipeline exported to Europe.

Kiev has refused to negotiate an extension of the transit contracts, meaning that the remaining Russian supplies will dry up and no longer have to be paid for. "The agreement with Russia will not be renewed, period, end of story," Ukrainian President Volodymyr Zelenskyy said in August.


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