October 24, 2014
US imposes toughest sanctions on Russia over Ukraine crisis
The United States today imposed its most wide-ranging sanctions yet on Russia's economy, including Gazprombank and the Rosneft Oil Co, and other major banks and energy and defense companies.
Washington has steadily escalated its financial sanctions on Russia over what it views as Moscow's interference in its neighbor Ukraine and its annexation of the Crimea region.
The targeted companies also include Russia's second-largest gas producer, Novatek, Vnesheconombank, or VEB, a state-owned bank that acts as payment agent for the Russian government, and eight arms firms.
The US Treasury Department, which posted the sanctions on its website, said the measures effectively closed medium- and long-term dollar funding to the two banks and energy companies. But the sanctions did not freeze these four companies' assets.
The sanctions stopped short of targeting Russia's Gazprom , the world's largest natural gas producer and provider of much of Europe's energy supplies. Gazprombank is 36 percent-owned by Gazprom.
The new measures were announced on the same day that European Union leaders met in Brussels and agreed to expand their own sanctions on Russia.
The new US sanctions also include Feodosiya Enterprises, a shipping facility in Crimea, and senior Russian officials, several of whom had already been targeted by the European Union.
The affected senior officials included the deputy head of the State Duma, or parliament, the minister of the Crimea, a commander of the Russian intelligence agency FSB, and a Ukrainian separatist leader.
"Russia has continued to destabilize Ukraine and provide support for the separatists, despite its statements to the contrary," Treasury Undersecretary for Terrorism and Financial Intelligence David Cohen said in a statement announcing the new sanctions.
President Barack Obama in recent weeks has repeatedly threatened new sanctions, and appears to have run out of patience as fighting continued to rage in eastern Ukraine.
"There are some clear steps that we've asked Russia to take that they haven't taken. And that is what has elevated the risk that Russia faces right now as it relates to additional economic costs that could be imposed by the international community," White House spokesman Josh Earnest told reporters earlier today.