US Unveils New Sanctions for Russian Entities

The United States has imposed sanctions on dozens of Russian financial institutions, marking a significant escalation in economic pressure against Russia’s war efforts in Ukraine.

At a Glance

U.S. sanctions target 54 Russian banks, 41 securities registrars, and 15 individuals.
Gazprombank Joint Stock Co., a major Russian bank, is a key target.
Sanctions aim to weaken Russia’s military capabilities and limit war financing.
The move comes shortly before President-elect Donald Trump takes office.
A temporary exception was granted for the Sakhalin-2 project involving Japan until near the end of June 2025.

Targeting Russia’s Financial Sector

On November 21, the U.S. Treasury Department announced a new wave of sanctions against Russia, focusing on its financial sector. The measures target 54 Russian banks and 41 securities registrars, along with 15 individuals, including 11 officials from the Central Bank of Russia. This move represents a significant expansion of economic pressure on Russia’s ability to finance its ongoing war in Ukraine.

A key target of these sanctions is Gazprombank Joint Stock Co., a major Russian bank that plays a crucial role in handling payments related to the war effort. Previously, Europe’s reliance on Russian fuel had shielded Gazprombank from severe sanctions. However, this new action indicates a shift towards targeting Russia’s primary exports, with the exception of the Sakhalin-2 project involving Japan, which has been granted a temporary exemption until June 28, 2025.

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. https://t.co/XpAaTSDboD

— Secretary Janet Yellen (@SecYellen) November 21, 2024

Impact and Objectives of the Sanctions

The primary objective of these sanctions is to undermine Russia’s ability to acquire equipment and technology for its war efforts. By targeting financial institutions, the U.S. aims to limit Russia’s use of the international financial system for war financing. National Security Advisor Jake Sullivan emphasized this point, stating that the measures are designed to put Ukraine in the strongest possible position.

These sanctions are part of a broader strategy that includes significant financial and military support to Ukraine. The Biden administration recently announced a $275 million arms package and has reversed its policy on anti-personnel landmines, allowing Ukraine to use U.S.-donated long-range weapons. This comprehensive approach aims to strengthen Ukraine’s position while simultaneously weakening Russia’s ability to sustain its military operations.

Implications and Future Outlook

The effectiveness of these sanctions remains a topic of debate among experts. At a Brookings Institution event from earlier this year, Deputy National Security Advisor Daleep Singh clarified that the sanctions were not intended to reverse Russia’s actions but to raise the cost of the war for Russia and provide strategic leverage to Ukraine. However, some experts argue that more significant economic damage may be necessary to end Russian aggression.

The timing of these new sanctions is particularly noteworthy, coming shortly before President-elect Donald Trump takes office. Trump has expressed a preference for negotiating an end to the war, which could potentially lead to a shift in U.S. policy towards Russia and Ukraine. As the situation continues to evolve, the effectiveness of these sanctions and their impact on the conflict will be closely monitored by policymakers and international observers alike.