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Significance

On November 21, the US Treasury announced a new package of sanctions on Russia, including blocking measures against the country’s third-largest financial institution by net assets, state-controlled Gazprombank. Kremlin spokesperson Dmitry Peskov decried the sanctions as yet another example of economic warfare directed from Washington.

Impacts

Under an OFAC licence, Gazprombank can process US dollar-denominated transactions involving civil nuclear energy until July 2025.

The expected decline in Russian pipeline gas exports to Europe should offset the negative impacts of the latest sanctions.

US authorities may hesitate to sanction key banks in third countries that conduct business with Russia for fear of alienating them.

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