US Threatens Sanctions Against Countries Hosting Russian Banks
The US has issued a warning to states engaged in trade with Moscow, stating that they could face secondary sanctions if they permit Russian banks to establish local subsidiaries. Read Full Article at RT.com
TroibNews 
The US Treasury Department has accused Moscow of using financial institutions to avoid sanctions by setting up branches and subsidiaries in third countries.
The US Treasury's Office of Foreign Assets Control (OFAC) warned on Friday that countries maintaining economic relationships with Russia could face secondary sanctions if they permit Russian banks to establish local branches, which could be used to support bilateral trade.
The actions are designed to prevent Russia from bypassing existing sanctions through indirect methods. The Treasury has suggested that Russia is employing complex tactics to acquire dual-use goods from these third countries.
“Treasury is aware of Russian efforts to facilitate sanctions evasion by opening new overseas branches and subsidiaries of Russian financial institutions,” the statement reads.
The agency called on international financial regulators and institutions to exercise caution in their interactions with these foreign branches or subsidiaries of Russian banks. It particularly highlighted the risks associated with establishing new branches or subsidiaries, noting its array of tools to address such evasion tactics. The warning specifically targets Russian banks that have not yet been sanctioned.
Since the intensification of the conflict in Ukraine in February 2022, Washington has imposed multiple rounds of sanctions focusing on the dealings between foreign banks and Russian firms.
In December, President Joe Biden implemented secondary sanctions aimed at financial institutions supporting Russia’s defense sector, according to the US administration.
The administration added more than 4,500 Russian entities to its blacklist last year, aiming to deter foreign financial involvement with these entities.
In June, the White House broadened its efforts to penalize foreign banks operating in Russia, targeting any institution interacting with sanctioned entities within Russia. Additionally, the US targeted subsidiaries of major Russian banks like VTB, Sberbank, Promsvyazbank, and Vnesheconombank located in China, Kyrgyzstan, and India.
Since the onset of the Ukraine crisis in 2014, following Crimea’s reintegration with Russia and the subsequent conflict spurred by a coup in Kiev supported by the West, the US and its allies have imposed unprecedented sanctions against Russia. Recently, the US announced new sanctions against 400 individuals and entities across Russia, Asia, Europe, and the Middle East for aiding Moscow’s military-industrial complex.
Russia’s Ambassador to the US, Anatoly Antonov, criticized the sanctions as ineffective and damaging not only to US domestic consumers but also to international partners. Moscow has denounced the sanctions as unlawful and has retaliated with travel restrictions on Western officials among other measures.
Emily Johnson for TROIB News
The US Treasury's Office of Foreign Assets Control (OFAC) warned on Friday that countries maintaining economic relationships with Russia could face secondary sanctions if they permit Russian banks to establish local branches, which could be used to support bilateral trade.
The actions are designed to prevent Russia from bypassing existing sanctions through indirect methods. The Treasury has suggested that Russia is employing complex tactics to acquire dual-use goods from these third countries.
“Treasury is aware of Russian efforts to facilitate sanctions evasion by opening new overseas branches and subsidiaries of Russian financial institutions,” the statement reads.
The agency called on international financial regulators and institutions to exercise caution in their interactions with these foreign branches or subsidiaries of Russian banks. It particularly highlighted the risks associated with establishing new branches or subsidiaries, noting its array of tools to address such evasion tactics. The warning specifically targets Russian banks that have not yet been sanctioned.
Since the intensification of the conflict in Ukraine in February 2022, Washington has imposed multiple rounds of sanctions focusing on the dealings between foreign banks and Russian firms.
In December, President Joe Biden implemented secondary sanctions aimed at financial institutions supporting Russia’s defense sector, according to the US administration.
The administration added more than 4,500 Russian entities to its blacklist last year, aiming to deter foreign financial involvement with these entities.
In June, the White House broadened its efforts to penalize foreign banks operating in Russia, targeting any institution interacting with sanctioned entities within Russia. Additionally, the US targeted subsidiaries of major Russian banks like VTB, Sberbank, Promsvyazbank, and Vnesheconombank located in China, Kyrgyzstan, and India.
Since the onset of the Ukraine crisis in 2014, following Crimea’s reintegration with Russia and the subsequent conflict spurred by a coup in Kiev supported by the West, the US and its allies have imposed unprecedented sanctions against Russia. Recently, the US announced new sanctions against 400 individuals and entities across Russia, Asia, Europe, and the Middle East for aiding Moscow’s military-industrial complex.
Russia’s Ambassador to the US, Anatoly Antonov, criticized the sanctions as ineffective and damaging not only to US domestic consumers but also to international partners. Moscow has denounced the sanctions as unlawful and has retaliated with travel restrictions on Western officials among other measures.
Emily Johnson for TROIB News
