The last of Russia's major state-owned banks, Gazprom, which retains access to the SWIFT system and settlements in major world currencies, will be subject to new US sanctions.
Points of attention
- USA considering sanctions against Gazprombank, the third-largest bank in Russia by assets, as a means to increase pressure on Russia amidst the war against Ukraine.
- Gazprombank may face restrictions on operations with American banks, potentially losing access to the SWIFT system and payments in major world currencies.
- If sanctioned, Gazprombank's role as a 'hub' for gas settlements with Europe could be significantly affected, impacting its ability to conduct transactions.
- The US Treasury's decision to impose new sanctions reflects Washington's commitment to targeting those that support Russia's military actions, including entities facilitating the Kremlin's war machine.
- Janet Yellen, the head of the US Treasury Department, hinted at forthcoming measures against Gazprombank and other intermediaries aiding Russia in its conflict with Ukraine.
Gazprombank will fall under US sanctions
The administration of US President Joe Biden is considering the possibility of blacklisting Gazprombank (GPB), the third-largest bank in Russia by assets, which is a "hub" for gas settlements with Europe.
According to the sources of the media resource, "Gazprom" will be prohibited from any transactions with American banks. A decision on sanctions will be made by the end of November — the US has informed its G7 partners about it, the publication's sources, including high-ranking European officials, said.
Gazprombank, which is one-third directly owned by Gazprom and another 40% by its pension fund, has not yet come under strict Western restrictions: in the US it is only prohibited to raise capital on the debt market, although its top managers and subsidiaries are under sanctions IT company. In the European Union, GPB also avoided "blacklists", and only Great Britain imposed sanctions against the bank.
As a result, the bank was able to become one of the main "custodians" of the giant reserves of foreign currency that the Kremlin collected abroad after the Central Bank's assets in the West were frozen.
As of mid-2024, according to Janis Kluge, a researcher at the German Institute for International Security Problems, these "shadow reserves" have reached $180 billion. In his opinion, this money can be used to pay for critical imports or support the ruble exchange rate if the situation in the Russian economy radically worsens.
Since the beginning of 2023, GPB has had problems with operations in dollars after the American JPMorgan Chase Bank and Bank of New York Mellon (BoNY) closed its correspondent accounts. The bank's website states that it currently offers transfers in euros, Chinese yuan and Kazakhstani tenge.
A few years after Vladimir Putin came to power, the bank came under the influence of the closest friends of the Kremlin leader — Yuriy Kovalchuk and Mykola Shamalov. Members of the Kovalchuk and Shamalov families and other representatives of Putin's elite worked in the bank and the structures controlling it.
Washington promises new sanctions against Ukraine's enemies
The head of the US Treasury Department, Janet Yellen, made a statement in this regard.
According to her, the team of the US Ministry of Finance has already made the relevant decision and will officially announce it next week.
Janet Yellen also pointed out that the new restrictions will target "those who facilitate the Kremlin's war machine, including intermediaries in third countries that supply Russia with critical resources for its military."
As of the evening of October 22, the American minister did not disclose other details of future measures against Russia.
During the more than 10 years of the Russian Federation's war against Ukraine, the United States introduced a number of measures aimed at the sources of income and the industrial complex of Russia.
