U.S. Sanctions on Natural Gas Transaction Settlement Gazprom Bank and Others

The United States has announced additional sanctions targeting Russian financial institutions to isolate Russia from the international financial system, which invaded Ukraine.The U.S. Treasury Department and State Department said on the 21st local time that 118 organizations and individuals were included on the sanctions list, including more than 50 Russian banks, 40 Russian securities registry offices and 15 Russian financial officials.

The sanctions included Gazprom Bank and its subsidiaries, a subsidiary of Russian state-owned natural gas company Gazprom, which is a major window for payment of natural gas transactions in Russia and other European countries.

The U.S. has not sanctioned Gazprom Bank directly, considering Europe's heavy reliance on Russian natural gas.The U.S. Treasury Department
explained that Russia is using Gazprom Bank as a window to purchase war supplies and pay military salaries.

Treasury Secretary Janet Yellen said the move was aimed at the largest unsanctioned Russian bank and would make it harder for Russia to finance and equip itself from U.S. sanctions.