Biden Administration Imposes New Financial Sanctions Against Russia Over Ukraine

President Biden today announced a number of sanctions against two Russian state-owned financial institutions, five Kremlin-connected individuals and additional restrictions on Russian sovereign debt in response to Russia’s decision to deploy troops to the Donetsk and Luhansk regions of eastern Ukraine.

In a statement, the Treasury Department said the actions ensure that Corporation Bank for Development and Foreign Economic Affairs Vnesheconombank and Promsvyazbank Public Joint Stock Company, along with 42 of their subsidiaries, can no longer do business in the United States and are cut off from the U.S. financial system.

All of these entities’ assets under U.S. jurisdiction will be immediately frozen, Treasury said, adding that U.S. individuals and entities are prohibited from doing business with these institutions unless authorized by Treasury’s Office of Foreign Assets Control.

Separately, the administration imposed new sanctions on five individuals the Treasury considers to be members of Russian President Vladimir Putin’s inner circle. In addition, Treasury imposed new restrictions on U.S. banks’ ability to finance new Russian debt starting on March 1.