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The United States has announced additional sanctions targeting Russia’s financial sector, including its largest remaining unsanctioned bank.

What’s the deal: In an announcement by the Treasury Department, the United States unveiled new sanctions targeting key entities and individuals within Russia’s financial sector to disrupt its ability to fund military operations in Ukraine. These sanctions specifically target Gazprombank, Russia’s third-largest bank, along with over 50 internationally connected banks, 40 securities registrars, and 15 finance officials who have created alternate financial pathways.

The sanctions block the assets and property of these entities, restrict their transactions, and specifically address Russia’s System for Transfer of Financial Messages (SPFS), a SWIFT alternative used to evade sanctions. The sanctions also include subsidiaries of Gazprombank in Luxembourg, Hong Kong, Cyprus, Switzerland, and South Africa, underscoring the global reach of the sanctions.

Digging Deeper: According to the Treasury Department, Gazprombankis pivotal in supporting Russia’s war in Ukraine by acting as a financial conduit for critical military operations. The bank facilitates the purchase of military equipment essential for Russia’s ongoing aggression and manages payments to Russian soldiers, including combat bonuses. Additionally, it handles compensation to the families of soldiers killed in combat.

What the US is saying: In a statement, Treasury Secretary Janet Yellen said, “Today’s sanctions targeting Russia’s largest remaining non-designated bank, as well as dozens of other financial institutions and officials in Russia, will further diminish and degrade Russia’s war machine. This sweeping action will make it harder for the Kremlin to evade US sanctions and fund and equip its military. We will continue to take decisive steps against any financial channels Russia uses to support its illegal and unprovoked war in Ukraine.”