OFAC ramps up Russian sanctions; Banks, individuals targeted

With the Russian invasion of Ukraine still ongoing, the Treasury Department’s Office of Foreign Assets Control today announced additional significant steps to sanction Russian individuals and entities. Treasury imposed full blocking sanctions against two Russian banks—Sberbank, the largest state-owned bank, and Alfa-Bank, the country’s largest private bank—as well as several subsidiaries of each bank.

Treasury also targeted sanctions against family members of Russian President Vladimir Putin and Foreign Minister Sergey Lavrov, as well as Russian Security Council members who are complicit in the war against Ukraine.

Treasury noted that President Biden is also issuing a new executive order banning new investment in the Russian Federation and the provision of certain services to any person located in the Russian Federation by U.S. persons, regardless of their location. Earlier this week, Treasury banned Russia from making payments to holders of its sovereign debt with its frozen central bank reserves.

The American Bankers Association continues to track developments related to the Russian invasion of Ukraine and related sanctions activity through its dedicated webpage on aba.com.