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Russian Invasion of Ukraine, 2022-

Western Allies Impose Toughest Sanctions Yet on Russia's Biggest Banks and Bankers

Strategic Insights

— 1 min read

The US, EU, and UK are ramping up economic punishment of Moscow in response to alleged atrocities committed by Russian forces in Ukraine. The sanctions target Russia's largest financial institution, Sberbank, and its biggest private lender, Alfa-Bank, preventing them from dealing with any US institution or individual. The measures also include targeting Putin's daughters, Ekaterina Tikhonova and Maria Vorontsova, and other high-profile individuals. The western allies hope to isolate Russia and prevent it from benefiting from the international financial system.

Key Takeaways:

  • The US, EU, and UK have imposed the toughest sanctions yet on Russia's biggest banks and bankers in response to alleged war crimes in Ukraine.
  • Sberbank, Russia's largest financial institution, and Alfa-Bank, the country's biggest private lender, have been hit with "full blocking sanctions" by the US, preventing them from dealing with any US institution or individual.
  • The sanctions also target Putin's daughters, Ekaterina Tikhonova and Maria Vorontsova, and other high-profile individuals, including Russian Foreign Minister Sergei Lavrov's wife and daughter.
  • The EU is to add Herman Gref, the head of Kremlin-controlled Sberbank, and aluminium oligarch Oleg Deripaska to its sanctions list, subjecting them to asset freezes and travel bans.
  • The UK has also announced extra sanctions against Putin's regime, including full asset freezes against Sberbank and a ban on imports of Russian iron and steel products.
  • The US and UK have banned any new outward investment to Russia, while the EU is targeting Tikhonova and Vorontsova.
  • The sanctions are part of a proposed fifth package of EU measures against Moscow, including new restrictions on Russian coal.

Statistics:

  • $42 million of art worth was seized by Finland at the Vaalimaa border, headed for Russia.
  • The EU's latest sanctions form part of a proposed fifth package of EU measures against Moscow.
  • The sanctions target 381 Russian individuals and entities, including banks, government officials, and businessmen.

Sources:

  • "US slaps sanctions on Russia's largest banks as western allies escalate economic punishment" by Courtney Weaver, James Politi and Colby Smith in The Financial Times (no date specified)
  • "Russia-Ukraine news: Live updates" by The New York Times (no date specified)
  • Vatican Media via Reuters (no date specified)

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