More NewsUS Beefs up Sanctions against Russia

US Beefs up Sanctions against Russia

A raft of new and tougher economic sanctions imposed by the US against Russia will target the country’s largest oil producer, Rosneft, its third-largest bank, Gazprombank (GPB), and other energy, financial and defence firms.

President Obama announced the latest round of sanctions, which he said would target those companies responsible for the continuing support of separatists battling government forces in eastern Ukraine, after close consultations with European leaders who favoured less stringent measures.

“We have repeatedly made clear that Russia must halt the flow of fighters and weapons across the border,” said Obama. “We have to see concrete actions and not just words.”

The ultimate impact of the tougher sanctions is likely to depend on whether the European Union (EU) follows the US lead.

The targeted companies also include Russia’s second-largest gas producer Novatek, state-owned bank Vnesheconombank (VEB), which acts as payment agent for the Russian government, and eight arms firms.

The US Treasury Department said that the latest measures effectively closed medium- and long-term dollar funding to the two banks and energy companies. However the sanctions did not freeze those four companies’ assets, or otherwise prevent US companies from doing business with them.

The sanctions also stopped short of targeting Russia’s Gazprom, the world’s largest natural gas producer and provider of much of Europe’s energy supplies, which has a 36% stake in Gazprombank.

Russian president Vladi¬mir Putin responded to the announcement by telling journalists in Brasilia, where he is visiting, that “sanctions are driving Russian-American relations into a dead end.”

Related Articles

Infosys Finacle to power Santander UK’s international cash management system

More News Infosys Finacle to power Santander UK’s international cash management system

2m The Global Treasurer
Preparing for GDPR? Here’s four things to consider

More News Preparing for GDPR? Here’s four things to consider

5m Elliott Wiseman
Cash flow in focus for investors

Cash Management Cash flow in focus for investors

6m Conor Deegan
Treasury TV: Karen Pugsley, Domino's Pizza Group

More News Treasury TV: Karen Pugsley, Domino's Pizza Group

6m Victoria Beckett
Treasury TV: Yeng Butler compares US and European MMF reforms

Compliance Treasury TV: Yeng Butler compares US and European MMF reforms

6m Victoria Beckett
Treasury TV: Tim de Knegt, The Port of Rotterdam

10 Minutes With The Treasury Treasury TV: Tim de Knegt, The Port of Rotterdam

6m Victoria Beckett
Banks are selling clients short with short dated cash deposit U-turns

Banking Banks are selling clients short with short dated cash deposit U-turns

6m Victoria Beckett
What does sterling’s Brexit boost mean for UK manufacturers?

More News What does sterling’s Brexit boost mean for UK manufacturers?

6m Tasja Botha